[Why&Next] S·D·M Fixed Price System Compliance Only 4%...Fair Trade Commission Confident, Citing Gym Success

Mandatory Online and Offline Price Disclosure Begins May 12
Compliance Rate at 4%, but KFTC Confident Citing Gym Sector Success

The so-called "Studio·Dress·Makeup (S·D·M) Fixed Price System," also known as the "Wedding Service Price Display System," will be fully implemented starting May 12. This follows the end of a six-month guidance period after the system was established in November last year. While on-site compliance remains low, the internal sentiment at the Korea Fair Trade Commission is surprisingly positive. The commission has announced plans to eradicate longstanding unfair practices in the wedding market through extensive inspections and the imposition of fines.

Six-Month Guidance Period Ends...Compliance Rate Stuck in the Single Digits

Seongnam Solomon Wedding Garden Saemaeul Undong Central Training Institute Wedding. The Asia Business Daily DB.

According to the Fair Trade Commission on May 12, under the revised "Important Labeling and Advertising Notice" that took effect in November last year, all wedding service providers are now required to post detailed price information not only offline but also on their official websites and on "Chamgagyeok," the Korea Consumer Agency’s price information website. Providers must disclose detailed descriptions and fees for basic services and optional items such as S·D·M packages, as well as information on penalties and refund standards in case of contract cancellation.

This system was introduced to protect prospective couples from the frequent damage caused by "blind contracts" when using S·D·M package services, by increasing the predictability of wedding costs and preventing consumer harm. However, considering that businesses needed time to prepare, a six-month guidance period had been in place, which ended on May 11. From May 12, violations may result in fines of up to 100 million won.

As of May 11, however, only 64 wedding halls and wedding planning agencies had disclosed information on Chamgagyeok. Given that there are estimated to be around 1,500 wedding service businesses nationwide, the compliance rate stands at about 4 percent. Even taking into account disclosures made via their own websites, this is a very low figure. The low compliance rate is believed to be due to many businesses, especially small proprietors, still being unaware of the new regulations, given the market’s structure centered on small businesses.

Nationwide Inspection of 500 Businesses Announced..."It’s Only a Matter of Time Until the System Is Established"

Although compliance remains low, internal sentiment at the Fair Trade Commission is not as negative as expected, thanks to the prior successful implementation of the gym price display system. When the gym price display system was introduced in 2022, initial uptake was also slow due to indifference among small business owners. However, the Fair Trade Commission was able to raise the compliance rate to 95 percent through administrative measures such as inspections and fines. Given the market’s focus on small business owners, the commission expects that on-site inspections and practical sanctions will lead to a sharp increase in participation.

Moreover, wedding services have more clearly defined regional hubs and fewer businesses compared to gyms, making management more efficient. Targeting only the key businesses can send a strong signal to clean up the entire market. Accordingly, the Fair Trade Commission plans to launch a large-scale inspection now that the guidance period has ended, with an initial target of 500 businesses. This includes 150 wedding planner agencies, which play a decisive role in determining S·D·M prices across the market.

A Fair Trade Commission official stated, "Many planners operate as sole proprietors, and fines could wipe out an entire year’s income, which would be a huge blow. We will give two notices or warnings, but on the third violation, fines will be imposed without exception under a 'three-strike policy,'" emphasizing a strict response. The official added that if word spreads that "the business next door posted prices, gained trust, and saw business improve," the remaining companies are likely to join the fixed price system for their own survival.

Meanwhile, the wedding service industry is facing major changes this year, including the introduction of the price display system. The "Act on the Management of Wedding Service Businesses," which makes business registration mandatory for wedding planning agencies, recently passed the Gender Equality and Family Committee and is awaiting a vote in the National Assembly. If the bill passes, related statistical operations such as inspections will be transferred to the Ministry of Gender Equality and Family next year. With public interest in weddings rising—as seen in increasing marriage rates for three consecutive years (2023-2025)—the Fair Trade Commission is determined to ensure the successful establishment of the price display system’s "hardware" so that the system will remain in place even after responsibility is transferred to another ministry.

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