Analysis of International Transaction Consumer Consultations by Korea Consumer Agency
22,816 Cases Last Year... Up 17.5% from Previous Year
Overseas Direct Purchase Consultations Most Common... Airline Tickets, Clothing, Accommodations, etc.
Increase in Damages Likely Due to Rising Use of OTA and C-commerce
Since the transition to endemic (periodic outbreaks of infectious diseases), demand for overseas travel has recovered to pre-COVID-19 levels, and direct purchases through overseas e-commerce platforms have surged, leading to a significant increase in related consumer complaints.
According to the Korea Consumer Agency on the 4th, the number of consumer consultations related to international transactions last year was 22,816, a 17.5% increase from 19,418 the previous year. The number of consultations recorded 26,954 in 2020 when COVID-19 first occurred, then dropped to 14,086 the following year, but has been rising again in recent years.
By transaction type, consultations related to overseas direct purchases (direct import) were the highest at 14,720 cases, followed by purchase and delivery agency service consultations at 7,566 cases. Among overseas direct purchases, consultations related to service purchases accounted for the majority with 10,395 cases, most of which were related to airline tickets or accommodations. The Korea Consumer Agency analyzed that as demand for overseas travel rapidly increases, the number of consumers using online travel agency (OTA) platforms has also grown, leading to more related consumer consultations.
In fact, an analysis of 22,758 cases with detailed item information among the total international transaction consultations last year showed that airline tickets and airline services accounted for the largest share with 6,737 cases (29.6%). Next were clothing and footwear with 4,012 cases (17.6%), followed by accommodations (reservations) with 3,735 cases (16.4%).
The most common types of complaints regarding airline tickets and airline services were delays or refusals of cancellations, refunds, and exchanges, totaling 2,813 cases (41.8%). Unfair charges for penalties and fees (2,166 cases, 32.2%) and contract non-fulfillment (1,261 cases, 18.7%) were also significant.
Among 12,800 cases where the location of the overseas business operator was identified, Singapore accounted for the largest share with 5,636 cases (44.0%), followed by China (Hong Kong) with 2,590 cases (20.2%), the United States with 1,175 cases (9.2%), Sweden with 854 cases (6.7%), and Malaysia with 349 cases (2.7%).
China (Hong Kong) saw the largest increase over one year, rising by 123.1%. This was mainly due to an increase in consultations related to Chinese e-commerce platforms AliExpress and Temu. Consultations related to AliExpress and Temu increased by 114.7% from 680 cases in 2023 to 1,460 cases last year.
Singapore, which had the second highest growth rate, saw consultations related to global OTAs Agoda and Trip.com double from 2,778 cases to 5,559 cases during the same period, a 100.1% increase. Consultations related to these two companies accounted for 98.6% of all consultations from Singapore.
The Korea Consumer Agency advised that to prevent damage in international transactions, consumers should carefully check seller information, transaction conditions, and whether the site is registered as a suspected fraudulent site before making a transaction. They also urged consumers to seek help from the International Transaction Consumer Portal if damages are not resolved smoothly.
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