1 week Ago By [email protected](KoreaTimes)
Shin Yong-ho, chief of the Fair Trade Commission's Adhesion Contract and Special-Type Trade Division, speaks during a press conference on the agency's latest investigation into wedding planners that have been caught practicing unfair terms of contract against customers, at the authority's office in Sejong, Tuesday. Yonhap Photo, dress, makeup packages deemed excessive By Ko Dong-hwan The government completed its investigation into wedding planning companies in Korea for unfair practices, including excessive charges for popular pre-wedding services such as photography, wedding dress rentals, and makeup, according to the country’s top antitrust agency, Tuesday. After investigating 18 wedding planners in Korea with the most consumer complaints over three months, the Fair Trade Commission (FTC) concluded that the planners were enforcing multiple unfair contract terms.
The investigation followed longstanding consumer grievances about the high prices of pre-wedding services, often offered as a trio package costing millions of won, with additional charges for extra options. The FTC’s Adhesion Contract and Special-Type Trade Division pointed out that wedding planners have been excluding some essential services from their packages and charging additional fees for them. The authority said the non-packaged services numbered from 20 to 30 and some of them with outstanding importance — costs for purchasing original photos, trying on wedding dresses and early morning makeup service, for example — should have been included in the basic package.
The FTC pointed out that the wedding planners did not clarify the prices of additional fees in their terms of contract by stating them merely as “extra.” This made it impossible for consumers to compare the prices of different wedding planners before finalizing their selection, which the commission called an unfair business practice. The FTC also pointed out that wedding planners were charging customers excessive penalties for canceling their contracts.
The planners have been forcing customers to make an advance payment of 20 percent of contract money and, in cases of cancellation, did not refund the money “under all circumstances.” The agency said this is "too harsh." An ad for a wedding planning company in Korea claims it provides snapshot photos, wedding dress and makeup.
gettyimagesbank The FTC ordered the wedding planners to adjust their contract terms regarding penalties and grace periods granted to customers to cancel their contracts. It also ordered them to remove contract terms stating that wedding planners should not be held responsible for any conflict between customers and service providers. It also called for the removal of contract terms stating that customers whose marriages are called off cannot hand over their contracts to a third party.
Shin Yong-ho, chief of the adhesion contract division chief, said that they have rooted out some of the most serious unfair trade practices that have been causing inconvenience to some 400,000 wedding couples every year. “The latest revision will greatly help the country's wedding couples by allowing them to compare prices of different wedding planners more transparently and lower costs,” Shin said. The FTC’s latest investigation is part of measures announced by Presidential Committee on Ageing Society and Population Policy in July to provide a friendlier social environment for marriage amid the country's record-low birthrate.
Over 52 percent of wedding couples in Korea hired wedding planners and paid from 2.5 million won ($1,800) to 3 million won on average, according to the FTC. In a survey of 500 who had hired wedding planners in 2023, over 74 percent said they found it unfair for wedding planners to charge extra fees for additional services.
The average they ended up paying for additional services was 1.44 million won. The FTC added that wedding planners that have escaped its latest dragnet and don’t self-report for similar unfair contract terms will be prosecuted if caught later.
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