Woori Tourism Underpaid 20 Million KRW in Cancellation Refunds... Fair Trade Commission Issues 'Business Suspension and Corrective Order'

[Sejong=Asia Economy Reporter Joo Sang-don] Woori Tourism received a business suspension order for underpaying cancellation refunds by 20 million KRW on 1,600 prepaid installment contracts requested for contract termination by consumers and for failing to comply with the mandatory preservation ratio of advance payments.

On the 5th, the Fair Trade Commission announced that it decided to impose a corrective order and business suspension on Woori Tourism.

According to the Fair Trade Commission, Woori Tourism underpaid cancellation refunds by 20,819,248 KRW on 1,600 cases where consumers requested contract termination for prepaid installment contracts. The act of a prepaid installment transaction business operator failing to pay the statutory cancellation refund amount as stipulated in the Installment Transactions Act and the cancellation refund notice violates Article 25, Paragraph 4 of the Installment Transactions Act and corresponds to a prohibited act under Article 34, Item 11 of the law.

Regarding prepaid installment contracts, Woori Tourism submitted false data on advance payments received in advance from consumers to the deposit institution for 5,783 cases.

Additionally, Woori Tourism preserved only 6,082,860,000 KRW, which is 43.99% of the 13,826,520,000 KRW advance payments received from consumers related to 5,783 prepaid installment contracts, with the deposit institution while conducting business. The act of a prepaid installment transaction business operator operating without preserving 50% of the advance payments received from consumers with the deposit institution violates the prohibited acts under Article 34, Item 9 of the Installment Transactions Act.

The Fair Trade Commission decided to impose a corrective order and a 15-day business suspension on Woori Tourism’s illegal acts violating the Installment Transactions Act to prevent recurrence of the same or similar violations in the future.

A Fair Trade Commission official stated, "By imposing strong sanctions such as business suspension on prepaid installment transaction business operators who repeatedly violate the law despite the commission’s corrective orders, we expect to raise awareness of violations," and added, "The Fair Trade Commission will continue to actively monitor and strictly sanction repeated legal violations by prepaid installment transaction business operators to proactively prevent consumer damage."

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