Consumer Agency Issues Damage Warning as International Transaction Consumer Inquiries Rise 18% Last Year
Trade Reactivates After Endemic
Items Often 'Received Differing Products from Order'
Services Face Many Payment-Related Issues
Since the endemic phase, international transactions have expanded due to the activation of overseas direct purchases and foreign travel, leading to a resurgence in related consumer damages.
The Korea Consumer Agency announced on the 31st that a survey conducted on 500 consumers who had experience with overseas direct purchases in the past year revealed that 51 people (10.2%) reported having experienced damages. By site, the order was AliExpress (31 people), Amazon (9 people), 11st (8 people), and Naver Shopping (7 people). In particular, AliExpress had the lowest resolution rate (61.3%) among the surveyed sites, with only 19 consumers resolving their issues.
For overseas service transactions, a survey was conducted on 498 consumers who had experience using accommodations and flights, among whom 112 people (22.5%) reported experiencing damages during the transaction process. The sites with the highest number of damage experiences relative to users were Booking.com (20 people) and Expedia (10 people) for accommodations, and MyTrip (8 people) and Trip.com (13 people) for flights. Among these, Booking.com (60.0%), MyTrip (50.0%), and Trip.com (46.2%) showed low damage resolution rates.
By type of damage, in overseas direct purchases, "receiving a product different from the ordered item" was the most common with 26 people (51%), followed by "damage, loss, or delivery delays" with 21 people (41.2%). In overseas service transactions, for accommodations, payment-related damages such as "being charged more than the announced amount" and "double or automatic payments" accounted for 73 people (38.8%), while for flights, "excessive penalties or fees for cancellations or changes" were the most common with 39 people (46.4%).
This survey was conducted by the Korea Consumer Agency recognizing the steady growth of online overseas direct purchases and the activation of foreign travel after the endemic phase, which has led to an increase in consumer consultations related to international transactions. According to Statistics Korea, related damage amounts surged from 4.0667 trillion won in 2020 to 5.324 trillion won last year. Additionally, the number of international transaction consultations received by the Consumer Agency last year increased by 17.9% compared to the previous year.
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The Consumer Agency emphasized that the resolution rate for consumer damages in international transactions is lower than that for domestic businesses, urging consumers to exercise special caution when making transactions. They stressed the importance of carefully reviewing transaction conditions before concluding contracts when purchasing goods or services from overseas businesses. A representative from the Consumer Agency stated, "Before purchasing overseas goods or services, it is advisable to check the suspicious fraud sites and businesses with frequent damages disclosed on the International Transaction Consumer Portal and refer to related information to decide whether to proceed with the purchase."
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