South Korea cracks down on wedding industry amid consumer complaints

SEOUL - Amid longstanding controversy over excessive fees and a lack of transparency in the wedding industry, the South Korean government said it has mandated changes to contract terms at 18 major wedding planning firms.

The Fair Trade Commission (FTC) on Nov 12 said it had identified six types of unfair clauses in service agreements across 18 wedding planning companies that received the most consumer complaints over three months.

These companies offer package weddings – popular bundles consisting of pre-wedding studio photography, dress rentals and make-up, known as “sudeme” – which typically cost millions of won and come with hidden fees and various add-ons.

Under the change, FTC has ordered these wedding agencies to disclose the prices of all elements of these wedding packages, including any additional fees and cancellation charges.

Wedding planners typically disclose only the prices of what it calls basic services, such as studio photography, dress rental and make-up, leading customers to believe that this is the final price tag. But often, there are essential services billed separately later on, including original photo file purchases, dress fittings and early morning make-up services – which customers are ultimately required to pay as part of the wedding preparation.

FTC found that some agencies have up to 30 optional add-ons, making it nearly impossible for customers to gauge the total costs or compare prices across different service providers.

The revised rule also addresses issues with excessive cancellation policies, which FTC said weigh unreasonably on consumers. Specifically, some clauses require 20 per cent of the total price of a package wedding to be paid as a deposit, which is non-refundable under any circumstances if the contract is cancelled. Under the new guidelines, wedding planners must offer cancellation policies in compliance with the law and stipulate penalty fees based on the timing of service use.

Additional clauses that require consumers to waive agency liability in disputes with third-party vendors – such as the make-up salon, dress shop and photo studio – were also deemed unfair and ordered to be removed. The new guidelines also removed a clause that banned the transfer of contractual rights to another person in the event of a broken engagement.

In 2023, 52.3 per cent of newlyweds in South Korea used these wedding planning agencies, spending an average of 2.5 million won (S$2,400) to three million won, according to FTC.

An FTC survey conducted from September to October of 500 customers who used these wedding agencies found that 74 per cent considered the add-on fees unreasonable. Couples reported spending an additional 1.44 million won beyond their initial budget due to hidden fees.

The anti-trust regulator’s crackdown comes as part of South Korea’s broader efforts to tackle its low birthrate, which includes easing the financial burdens associated with marriage and parenthood. FTC said it will check whether the amended terms are implemented at wedding agencies, and will continue monitoring the industry to improve price transparency and establish standard terms. THE KOREA HERALD/ASIA NEWS NETWORK