South Korea Issues Non-Binding Guidelines on Yoga and Pilates Refunds and Closures

South Korea's Fair Trade Commission on Monday introduced standard contract terms for yoga and Pilates lessons that set refund guidelines and require businesses to give customers at least 14 days' notice before suspending operations or closing permanently.

The terms address a rise in disputes, with the Korea Consumer Agency logging 1,211 complaints in 2024 compared with 818 in 2021. The commission said its review found that ambiguous refund standards often led to calculations unfavorable to consumers.

Cancellation fees must now be based on the actual amount paid rather than any pre-discount price. Businesses must state whether refunds are calculated by lessons taken or by enrollment period and must explain the method before a contract is signed. Operators covered by guarantee insurance are required to disclose the policy type and coverage before a purchase.

The terms are not legally binding but serve as guidelines for the industry. "Our investigation showed that disputes between business owners and customers frequently arose during the process of canceling enrollments due to ambiguous refund calculation standards and refunds assessed in ways unfavorable to consumers," the commission said.

It added that the terms are expected to reduce disputes and improve trust and predictability.