Korea Consumer Agency Received 1,523 Damage Relief Cases Over the Past Three Years
High Number of Reports in August During Summer Vacation Season
Check Cancellation and Change Policies Carefully Before Signing Contracts
The Korea Consumer Agency announced on July 10 that it is issuing a consumer damage prevention advisory for air travel, accommodation, and rental cars in Jeju, which are frequently used by consumers during the summer vacation season.
Flight cancellations and delays. Photo is not related to specific expressions in the article. Yonhap News Agency
Consumer damages related to air travel, accommodation, and rental cars in the Jeju region have been occurring continuously every year. Over the past three years, from 2022, the Korea Consumer Agency received 739 cases related to air travel, 420 cases related to accommodation, and 364 cases related to rental cars. As of last year, air travel and rental car cases increased by 47.3% and 41.3%, respectively, compared to the previous year. Out of the 1,523 cases received over the past three years, August, when summer vacations are concentrated, had the highest number with 233 cases, followed by September with 158 cases and October with 135 cases.
Among consumer damage relief cases related to air travel in Jeju, the most common type was "airfare cancellation penalty," accounting for 53.7% (397 cases), followed by "flight delays and non-performance" at 19.8% (146 cases), and "baggage damage or loss" at 6.8% (50 cases).
The reason for the high number of airfare cancellation and penalty cases is that, although tickets purchased through e-commerce are subject to withdrawal of subscription under the Act on Consumer Protection in Electronic Commerce, some businesses refuse to allow such withdrawals. In addition, special discounted tickets with non-refundable conditions and tickets close to the departure date may have restrictions on refunds or withdrawal of subscription, and the Korea Consumer Agency explained that many disputes arose over these issues as well.
There have also been cases where some online travel agencies (OTAs) charged separate agency penalties in addition to airline penalties when canceling reservations. The Korea Consumer Agency noted that it is not necessarily unfair for travel agencies to impose separate penalties, and advised consumers to check the cancellation penalty policy before purchasing airline tickets.
In addition, if damages occur due to flight delays or non-performance by airlines, unless the delay is due to unavoidable circumstances such as bad weather as specified by relevant laws, consumers can claim compensation and should request confirmation of the reason for the delay from the airline. Also, to prevent baggage damage, items that are easily damaged, such as golf clubs, should be packed in dedicated cases.
Status of Airfare, Accommodation, and Rental Car Damage Relief in Jeju Region. Provided by Korea Consumer Agency
Of the 420 cases of accommodation-related consumer damage relief in Jeju, "reservation cancellation penalty" accounted for the largest share at 71.7% (301 cases), followed by "facility dissatisfaction" at 11.7% (49 cases).
The reason for disputes over accommodation reservation cancellation penalties is that businesses often set excessive penalties under the pretext of peak season, or some OTAs refuse refunds for cancellations, citing advance notice of non-refundable terms. Due to the regional characteristics of Jeju, flights are frequently canceled due to strong winds and other weather conditions, but some businesses have refused refunds for unused accommodations, citing the proximity to the scheduled stay date as the reason.
The "Consumer Dispute Resolution Standards" stipulate that if a reservation is canceled on the day of stay due to climate change or natural disasters making it impossible to use the accommodation, the deposit should be refunded. Therefore, when choosing accommodation, consumers should check the cancellation penalty policy, including refund rules related to weather conditions. In addition, to prevent damages related to dissatisfaction with facilities or poor hygiene, it is necessary to check the level of the accommodation by searching for user reviews.
For rental cars, 38.2% (139 cases) of consumer damages were related to "cancellation penalty" disputes, while 32.2% (117 cases) were related to "accident handling disputes." The reason for the high number of rental car reservation cancellation penalty disputes is that refunds are often refused when cancellations are made close to the scheduled use date. The "Consumer Dispute Resolution Standards" and the "Standard Terms and Conditions for Automobile Rental" stipulate that if a reservation is canceled at least 24 hours before the scheduled start time, the full deposit must be refunded.
Meanwhile, in the event of a rental car accident, there have been frequent disputes as businesses often overcharge for repair costs and loss-of-use fees, refuse to process insurance claims, or demand payment without providing repair statements. The Korea Consumer Agency also explained that some self-insurance products, such as "Super Self-Insurance" or "Full Self-Insurance," may give the impression that all damages are covered, but in reality, the exemption limit is low, so consumers may have to pay excess repair costs or may be excluded from coverage. Therefore, caution is needed.
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