Fair Trade Commission to Complete Investigation of Yanolja and Yogi-ottae by Early Second Quarter

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Fair Trade Commission plans to complete its investigation into allegations of unfair practices, such as excessive commission fees and advertising charges imposed by accommodation applications Yanolja and Yogi-ottae on lodging businesses, as early as the first half of the year.

According to industry sources on the 29th, the Fair Trade Commission will send a review report on whether Yanolja and Yogi-ottae abused their transactional dominance over domestic hotels, motels, and pensions by the first half of the year and plans to initiate sanction procedures within the year.

The Fair Trade Commission has been investigating Yanolja and Yogi-ottae following reports that they were charging excessive commissions and advertising fees.

Both accommodation apps charge lodging businesses an average commission of 10% per reservation and, if the listed businesses wish, collect separate advertising fees to provide promotional coupons related to those businesses to consumers. According to the listed businesses, these advertising fees range from 440,000 to 5,000,000 KRW per month in Seoul and 200,000 to 3,000,000 KRW in other regions.

According to the results of a fact-finding survey announced by the Fair Trade Commission earlier this month, 97.6% of lodging app listed businesses pay a certain percentage of commission fees, and 62% of businesses reported spending on advertising fees to the lodging apps. Notably, 84.5% of lodging app listed businesses responded that they feel burdened by the advertising fees.

The Fair Trade Commission is also examining whether the lodging apps are shifting responsibility for underage cohabitation to the listed businesses and looking into possible improvements. Currently, users aged 14 and above can use the lodging apps.

However, if a lodging business allows cohabitation without verifying that the reservation holder is a minor, they may face imprisonment of up to three years or a fine of up to 30 million KRW under the Youth Protection Act. The lodging industry argues that it is unfair for listed businesses to bear full responsibility for underage cohabitation.

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