Overseas Golf Canceled 3 Days Before... "Is Refund Possible?"

Consumer Agency Dispute Cases Show
30% Fee for Cancellation Up to One Day Before Departure
No Compensation for Absence Due to Illness

Mr. A planned an overseas golf trip with his spouse in January 2020, just before the spread of COVID-19, purchasing a 4-night, 5-day package through a specialized travel agency. The package price, including airfare, accommodation, and rounds of golf, was 3,580,000 KRW for two people (1,790,000 KRW per person). No separate deposit was paid. However, three days before departure, Mr. A’s spouse entered self-quarantine due to the flu and could not travel abroad. Mr. A also experienced a high fever and received medical treatment at a hospital. Afterwards, they submitted a medical certificate to the travel agency and requested to cancel the purchased package.

The travel agency notified them that, according to the contract cancellation terms, they must compensate 90% of the package price, amounting to 3,222,000 KRW. However, considering the illness of Mr. A and his spouse, the agency proposed that they only pay the airfare of 710,000 KRW per person, totaling 1,420,000 KRW. Mr. A’s side argued that since the trip was impossible due to illness, even paying the airfare was unfair and demanded a full refund.

As COVID-19 restrictions have eased, demand for overseas travel among Koreans has recently revived. Demand for golf trips to warmer regions has also surged. According to the travel industry on the 8th, the reservation rate for overseas golf travel packages this winter season at major travel agencies has increased about 3 to 4 times compared to the previous year. With contracts rapidly increasing and the COVID-19 spread not yet contained, disputes like this can frequently occur.

Since the disagreement between Mr. A and the travel agency could not be resolved, the case was referred to the Consumer Dispute Mediation Committee of the Korea Consumer Agency. The committee first judged that the contract between Mr. A and the travel agency was canceled three days before departure, based on Article 674, Paragraph 3 of the Civil Act, which states that “a traveler may cancel the contract at any time before starting the trip.” For damages due to contract cancellation, the committee referred to Article 16, Paragraph 1 of the Fair Trade Commission’s “Standard Terms and Conditions for Overseas Travel.” This clause stipulates that “if the contract is canceled 7 to 1 days before departure, 30% of the expenses must be compensated.”

Furthermore, Article 16, Paragraph 2, Subparagraph 2, Clause (d) of the standard terms specifies that “travelers who cannot participate in the trip due to illness or other physical abnormalities may cancel the travel contract without paying damages.” Since Mr. A’s spouse had a record of a five-day self-quarantine diagnosis due to the flu, the spouse was exempt from paying the cancellation fee.

Ultimately, the damages that Mr. A and his spouse must pay to the travel agency were set at 483,300 KRW. This means they only need to pay 30% of the cancellation fee, not the 90% (1,611,000 KRW per person) originally notified by the agency. The committee ordered the travel agency to refund 936,700 KRW to Mr. A and his spouse, which is the airfare of 1,420,000 KRW (for two people) minus the damages of 483,300 KRW that Mr. A must pay.

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