Golf Course Reservation Cancellation "No Excessive Penalty Fees"

Fair Trade Commission Revises Standard Terms for Golf Course Use
Weekend Golf Cancellation Penalty Free 4 Days Before, 10% Charge 3 Days Before
Usage Fee Excludes Cart and Other Ancillary Costs, Prohibition on Forced Purchase of Food and Goods

Excessive cancellation fees for golf course reservations have been reduced.

[Asia Economy Reporter Now Rae] Good news for weekend golfers.

Golfers will no longer have to pay excessive cancellation fees when canceling golf course reservations. On the 18th, the Fair Trade Commission newly established standard terms and conditions for golf course usage, including cancellation penalties for weekend golf course reservations.

The Fair Trade Commission stated, "Some businesses have been charging 100% of the usage fee as a penalty or arbitrarily setting entrance fees," and added, "With the standard terms reflecting realistic penalties, if more businesses adopt these terms, cases of excessive penalty charges will decrease."

According to the revised standard terms, if the reservation date falls on a weekend or public holiday, cancellations made up to four days prior to the reservation date will incur no penalty. This clause can be used in cases of bereavement or sudden schedule changes preventing the round. Cancellations made 2-3 days prior will incur a 10% penalty of the team usage fee, 20% one day prior, and 30% on the day of the reservation.

The team usage fee is calculated by multiplying the basic usage fee?excluding additional costs such as cart fees and shower facility usage?by the number of players scheduled for the round. Previously, there was no clear definition of entrance fees, which caused disputes. Many individual golf courses applied their own penalty standards instead of the standard terms. According to a golf course usage survey released last year by the Korea Consumer Agency, 23 locations (20.9%) charged cancellation penalties exceeding 100% of the total usage fee.

Of course, the standard terms are a type of model contract condition promoted by the Fair Trade Commission for each sector. Businesses are not required to follow them. However, starting next year, medium and large golf courses designated to receive various tax benefits, including exemption from individual consumption tax, must comply with the Fair Trade Commission’s standard terms.

If the usage date is a weekday, no penalty applies if canceled up to three days prior; 10% of the usage fee applies for cancellations two days prior, 20% one day prior, and 30% on the day of the reservation.

Golf courses must also compensate customers if they fail to fulfill their commitments. The Fair Trade Commission requires businesses to compensate users with 10-30% of the penalty fee depending on the cancellation date if the golf course cancels the reservation due to its own circumstances.

The Fair Trade Commission also introduced a clause prohibiting forced purchases of goods or food. Reservations cannot be made conditional on using the clubhouse restaurant, nor can customers be forced to use the golf course’s shaded rest areas. At public golf courses, customers are allowed to bring simple food and beverages.

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