"They Changed After Payment"... Consumers Burned by 'Discounted Medical Fees' Contracts

Korea Consumer Agency Received 1,198 Related Complaints Over Three Years
Contract Termination and Cancellation Penalty Disputes Account for 84%

Consumers are advised to exercise caution, as there are frequent cases where, after entering into long-term, multi-session treatment contracts with healthcare institutions and subsequently requesting cancellation, they are unable to recover their prepaid fees or receive only a small portion back due to deductions for services already rendered and cancellation penalties.

According to the Korea Consumer Agency on June 11, the number of complaints related to prepaid medical service fees received over the past three years, from 2022 through the first quarter of this year, totaled 1,198 cases. The annual breakdown is as follows: 192 cases in 2022, 424 cases in 2023, 453 cases in 2024 (including 116 in the first quarter), and 129 cases in the first quarter of 2025. This accounts for 35.2% of all medical service-related consumer complaints.

During this period, dermatology accounted for the largest share of complaints at 35.8% (429 cases), followed by plastic surgery at 29.2% (350 cases), Korean traditional medicine at 16.5% (198 cases), and dentistry at 10.3% (123 cases).

By reason for complaint, contract termination and cancellation penalties were the most common, making up 83.7% (1,003 cases). This was followed by adverse side effects at 10.0% (120 cases), and contract non-fulfillment (including incomplete performance) at 5.5% (66 cases).

The Korea Consumer Agency explained that when consumers request to terminate long-term, multi-session treatment contracts, the actual amount refunded may be significantly less than expected due to cancellation penalties set by the healthcare institution and deductions at the standard rate for all costs incurred up to the point of cancellation. Accordingly, the agency advised consumers to: ▲ be cautious when entering into long-term or multi-session contracts, as it may be difficult to recover medical fees afterward; and ▲ check the structure, terms, and detailed costs of the contract in advance.

The agency also recommended that consumers avoid contracting with healthcare institutions if the contract or terms and conditions contain clauses that restrict the consumer's right to cancel or impose excessive obligations for restoration to the original state upon contract termination or cancellation, as these are considered unfavorable conditions for consumers.