Airlines and diners will be subject to stringent rules in South Korea for flight delays and no shows without justification, the Korea Fair Trade Commission (KFTC) has said. The KFTC has introduced new standards for a number of consumer disputes as part of the new amendment, under which tardy airlines and no-show diners will be held accountable for their actions.

Under the legal revision, which takes effect today, airlines that fail to provide evidence that flight delays were caused due to unavoidable reasons will be made to provide increased compensation for passengers. When international flights are delayed for fewer than four hours, airlines will be forced to cough up between $200 and $400, while delays longer than four hours will see passengers offered between $300 and $600, excluding delays due to regular aircraft maintenance checks by the Ministry of Land, Infrastructure and Transport, circumstances related to airports, and unexpected actions for safe flights.

No-show diners will no longer be able to claim back a reservation fee within an hour of the reservation time, as customers who don’t show up at restaurants without following the proper cancellation process will not be refunded. However, when reservations are cancelled by restaurants, customers will be refunded twice the value of the reservation fee. Wedding planners will also be able to charge customers cancellation fees from now on when contracts are broken, not only for expenses for the making of goods, but also for their services. Business establishments will be exempt from cancellation fees in case of natural disasters such as earthquakes and volcanoes.

When making use of mobile gift cards, customers can now request change in cash if they spend more than 60 percent of a card’s value. Previously, customers had to spend more than 80 percent to claim change in cash when using mobile gift cards.

“We hope to prevent disputes and make sure to help provide damage relief for customers swiftly. We’ll follow closely the impact of the new standards for no-show cancellations, and see whether improvements or additional revisions should also be implemented,” a senior official at the KFTC said.

Source: Korea Bizwire 2018.3.1. Press Release