Reduced Penalty Fees for Postponing Weddings During Infectious Disease Outbreaks Like COVID-19

(Photo) [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] In cases where it is impossible to fulfill wedding contract obligations due to the outbreak of infectious diseases such as the novel coronavirus infection (COVID-19), penalty fees are expected to be exempted. Additionally, depending on the severity of the infection, penalty fees can be reduced by up to 40%.

The Fair Trade Commission announced on the 10th that it has prepared a draft revision of the consumer dispute resolution standards for the wedding industry, which is currently open for administrative notice until the 19th.

The consumer dispute resolution standards are regulations established and enforced by the Fair Trade Commission to facilitate smooth resolution of disputes that may arise between consumers and businesses. If there is no separate expression of intention regarding dispute resolution methods between the parties involved, these standards serve as the basis for agreements or recommendations to resolve disputes.

The dispute resolution standards include provisions for exemption from penalty fees and reduction of penalty fees, considering the risk level of infectious disease outbreaks, government measures, and the feasibility of contract fulfillment. If administrative orders such as facility closures or suspension of operations are issued, or if the wedding location or the user’s residence is declared a special disaster area making contract fulfillment impossible, the contract can be canceled without penalty fees. For example, if a wedding contract is signed on October 1 of this year and the wedding is scheduled for March 30 of next year, the contract can be canceled without penalty fees if a facility closure order is issued for the wedding venue for one week starting March 27.

In cases where administrative orders such as gathering restrictions are issued, or where compliance with quarantine rules is recommended due to the declaration of a serious stage, making contract fulfillment difficult, the contract terms can be changed without penalty fees or penalty fees can be reduced. Furthermore, if both parties agree on postponing the wedding date or adjusting the minimum guaranteed number of guests, the contract terms can be changed without penalty fees. However, if no agreement is reached regarding contract changes, the contract may be canceled, and in this case, penalty fees may be reduced depending on the risk of the infectious disease and the level of government measures. Specifically, if administrative orders such as gathering restrictions or facility usage restrictions are issued making contract fulfillment considerably difficult (equivalent to social distancing level 2), penalty fees will be reduced by 40%. If compliance with quarantine rules is recommended due to the declaration of an infectious disease crisis alert at the serious stage (equivalent to social distancing level 1), penalty fees will be reduced by 20%.

The Fair Trade Commission plans to finalize and implement the revision after fully collecting opinions from stakeholders and related ministries during the administrative notice period and going through committee resolutions.

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