No Refund Despite Monsoon Floods... What About 1 Million Won Per Night Accommodation?

Refund Refusal and High Fee Demands
Majority Violate Dispute Resolution Standards
Full Refunds for Natural Disasters
Only Applicable to Same-Day Weather Conditions

[Asia Economy Reporter Seungjin Lee] #Kwon Suhyun (30s, pseudonym), a housewife who planned to spend her summer vacation at a pool villa in Gapyeong, Gyeonggi Province this weekend, is in a dilemma. Gapyeong recently experienced floods and landslides that caused fatalities, making travel difficult in the area. However, the accommodation provider stated that they cannot refund the deposit because the scheduled usage date has arrived. Kwon said, "The company even encouraged visits, saying travelers are still using the facilities," adding, "The deposit exceeds 1 million won, which is too large an amount to give up."

According to the travel industry on the 5th, the number of consumers canceling accommodation reservations and requesting refunds has surged due to the ongoing rainy season over the past few weeks. However, amid nationwide disasters caused by heavy rain, some companies are demanding unreasonable cancellation fees or outright refusing refunds, causing frustration among consumers.

This summer, in particular, demand for summer vacations shifted domestically due to the COVID-19 pandemic, leading to a significant increase in accommodation prices. For example, the weekday price for one night at Pool Villa A in Goseong, Gangwon Province, was 600,000 won during the first week of this month. However, the price dropped to 230,000 won on weekdays in the last week of the month, showing about a threefold difference within three weeks. Luxury pool villas sometimes exceeded 1 million won per night.

The problem is that, as in Kwon’s case, some companies refuse refunds or demand excessive cancellation fees. According to the Korea Consumer Agency's "Consumer Dispute Resolution Standards," if a consumer cannot move to the accommodation area or use the lodging facility due to climate change or natural disasters, a full refund of the deposit is required when canceling the contract on the day of accommodation.

Natural disasters refer to cases where the Korea Meteorological Administration issues warnings or advisories for strong winds, high waves, heavy rain, heavy snow, storm surges, tsunamis, typhoons, volcanic warnings, or earthquakes (including seismic alerts). However, this applies based on the weather conditions on the day of accommodation; if a reservation is canceled in advance due to concerns about weather conditions on the reservation date, a full refund is not guaranteed.

Many companies also violate cancellation and refund policies. According to the Consumer Dispute Resolution Standards, cancellations made at least seven days before the scheduled use date during peak weekend seasons are subject to a 20% deduction from the total fee before refund. However, most companies apply higher deduction rates citing peak season reasons.

On social networking services (SNS), dozens of complaints about such damages are posted daily. Some companies remove natural disaster clauses from contracts at the time of agreement and deny refund obligations, or encourage travelers to proceed despite nearby landslides, claiming there are no safety issues.

Regarding this, a Korea Consumer Agency official stated, "If a business refuses to refund accommodation fees for unjust reasons, consumers can apply for damage relief through the Consumer Agency and seek mediation from the Consumer Dispute Mediation Committee," adding, "Since full refunds are possible depending on the weather conditions on the day, it is necessary to make careful decisions considering safety."

This content was produced with the assistance of AI translation services.