Korea’s Fair Trade Commission Introduces Standard Terms to Prevent Yoga and Pilates Fraudulent Closures

The Korea Fair Trade Commission has established standard terms for yoga and pilates to prevent consumer harm from deceptive closures. Under the new regulations, refunds for discounted memberships will be calculated based on actual paid amounts rather than discounted rates. Businesses must notify members at least 14 days in advance of suspensions or closures. The commission cited recurring issues where providers unfairly restricted refunds, inflated prices, and imposed excessive penalties. The standard terms now cap penalties at 10% of fees, clarify refund policies based on usage terms, and require disclosure of insurance details if applicable. Complaints related to closures rose from 1.7% in 2021 to 13.7% in 2024, with 17% of respondents reporting failed refunds averaging 250,000 KRW.