Accommodation Booking Scams Rise 39% Ahead of Summer Holidays

Consumer disputes over accommodation booking cancellations and refunds are on the rise, prompting the Korea Consumer Agency to issue a warning ahead of the peak summer vacation season. The agency noted that a significant portion of these issues, approximately 21%, occur during July and August, the prime vacation months.

Analysis of data from 2023 to 2025 revealed a consistent increase in accommodation contract-related complaints filed with the agency. Last year alone, 2,662 cases were reported, marking a 38.7% jump from the previous year. The majority of these complaints, a staggering 72.8%, were linked to online booking platforms that mediate accommodation sales.

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Non-refundable products were sold, so we cannot offer a refund.

The most common type of dispute, accounting for 65.5% of cases, involved "contract cancellation or termination," often due to excessive penalty fees. Within this category, 44.3% specifically related to "non-refundable" products, where consumers sought refunds but were denied by the platform based on stated terms and conditions. This situation is particularly problematic as South Korean e-commerce law allows consumers to withdraw from a contract within seven days of signing, provided certain conditions are met.

However, many online platforms cite non-refundable clauses to refuse these withdrawals, making it crucial for consumers to meticulously review refund policies before booking. The Consumer Agency advises consumers to verify refund policies and accommodation details before making reservations and to retain records of their bookings. The agency also plans to recommend that major online accommodation platforms enhance their adherence to withdrawal rights and improve the clarity of their terms and user guidance.

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We need to carefully check the refund policy when signing the contract.