Parcel Deliveries Surge During Holidays: Rise in Damage and Loss Cases Prompts Consumer Alert

Chuseok Parcel Volume Expected to Rise Over 10% Compared to Usual
Korea Consumer Agency and Fair Trade Commission Advise Caution to Prevent Damages

The Korea Consumer Agency and the Fair Trade Commission have advised consumers to exercise caution, noting that parcel delivery volumes are expected to increase by more than 10% compared to usual ahead of the Chuseok holiday, and that related damages may also rise.

Officials at the Dong Seoul Postal Logistics Center in Gwangjin-gu, Seoul, are busy sorting Chuseok gifts and parcel items. Photo by Jo Yongjun

According to the Korea Consumer Agency on September 21, a total of 1,149 requests for dispute resolution related to parcel delivery were filed with the agency over the past three years, from 2022 to June of this year, with more than 300 cases occurring each year. Of these, 76.5% (879 cases) were filed against five major operators: CJ Logistics, Kyungdong Parcel Service, Lotte Global Logistics, GS Networks, and Hanjin. The agency emphasized that, in addition to consumer vigilance, improvements from parcel service providers are needed.

By operator, CJ Logistics accounted for the highest number of cases at 30.0% (345 cases), followed by Kyungdong Parcel Service at 13.5% (155 cases), Lotte Global Logistics at 12.1% (139 cases), GS Networks at 10.8% (124 cases), and Hanjin at 10.1% (116 cases).

By type of damage, "damage or breakage" made up 42.3% (372 cases), and "loss" accounted for 37.1% (326 cases), together representing the majority of incidents. In particular, there were many cases where compensation was refused even after damage or breakage occurred, or compensation was delayed following loss incidents, indicating a need for improvement.

The Korea Consumer Agency and the Fair Trade Commission held a meeting with the top five operators with the most reported cases to share the results of the dispute analysis and recommended proactive measures to reduce consumer damages, such as strengthening notification of exemption clauses and ensuring prompt compensation procedures in case of accidents. They also found that "convenience store parcel scams," in which buyers steal products during person-to-person transactions, have emerged as a new type of damage, and requested that convenience store operators take precautions to prevent such incidents.

Accordingly, parcel service providers have decided to strengthen efforts to prevent consumer disputes by ensuring prompt compensation procedures and thorough notification of special terms at the point of service through training and management. Convenience store operators will share parcel scam prevention guidelines, such as verifying physical waybills, with each store.

To prevent damages, the Korea Consumer Agency and the Fair Trade Commission advise consumers to: ▲accurately fill out shipment information (item value, type, quantity, address, etc.) when sending parcels; ▲use protective packaging to prevent breakage; ▲keep documentation in case of disputes; and ▲allow sufficient time for delivery, as demand surges just before holidays can increase the risk of damage, loss, or delivery delays.

They also recommend that, when receiving parcels, consumers should, if possible, accept deliveries in person or, if using a designated location, take precautions against loss, and check immediately for any damage or spoilage upon receipt.