The Korea Fair Trade Commission (KFTC) has implemented revised consumer dispute resolution standards regarding restaurant no-shows and wedding venue cancellations. The revisions aim to reflect changes in consumer behavior and clarify dispute resolution criteria for various sectors, including lodging and travel.
Under the revised standards, restaurants that require advance reservations, such as omakase or fine dining establishments, are now classified as ‘reservation-based restaurants.’ The maximum penalty for no-shows at such venues is capped at 40% of the total cost, compared to 20% for general restaurants. If a business wishes to apply these new standards, it must clearly inform consumers via text message or other accessible means in advance. If the penalty is less than the deposit, the difference must be refunded to the consumer.
For wedding venue cancellations, penalties are now tiered based on cancellation timing. If canceled by the consumer, the penalty is 40% if canceled 10–29 days prior, 50% if canceled 1–9 days prior, and 70% on the day of the event. If the business cancels, a 70% penalty applies if canceled within 29 days of the event. Additionally, businesses may claim contract processing fees under certain conditions even during free cancellation periods, provided written consent is obtained after clearly stating the items and amounts.
In the lodging sector, free cancellations are now allowed on the day of reservation if natural disasters or other unforeseen events make it impossible to use the accommodation. This includes cases where such events occur along the route from the departure point to the accommodation. For overseas travel, ‘government orders’ as a reason for free cancellation are now specifically defined as Ministry of Foreign Affairs travel advisories at level 3 (advisory against departure) or level 4 (travel ban). Standards for resolving disputes in emerging sectors such as study cafes and changes to cancellation fees for railways and express buses have also been newly established or revised.