Agoda, an online travel platform, has been fined for failing to clearly disclose important information regarding refund conditions and cancellation fees during the booking process for accommodations and flights.
The Broadcasting and Media Commission (BMC) convened its 22nd plenary meeting on July 6 and decided to impose a fine of 2.424 billion won ($24 million) on Agoda for violations of the Telecommunications Business Act.
Agoda operates as a value-added telecommunications service provider, offering search, booking, and payment services for travel products such as accommodations, flights, activities, and car rentals through its website and mobile application.
The BMC initiated an investigation in September 2024 after identifying concerns that Agoda did not adequately inform users about critical aspects affecting their contracts, including refund conditions, cancellation and change fees, and additional charges for deferred payments.
The investigation revealed that during the flight booking process, Agoda failed to display refund eligibility and cancellation/change fees on the main booking screen, instead providing this information only through a less relevant link titled 'Baggage Allowance and Policy.' This made it difficult for users to easily verify refund conditions and fee obligations at the booking stage, according to the BMC.
Issues were also found in the accommodation booking process. When users selected 'Pay Later,' they could incur an additional fee of up to 5% at the time of payment, yet the pre-payment screen only displayed the 'current rate' without reflecting this potential charge.
The BMC noted that the use of foreign currency for the displayed payment amount or vague terms like 'including 5% adjustment' made it challenging for users to accurately understand the total amount they would be responsible for.
The BMC determined that such practices constitute prohibited actions under the Telecommunications Business Act that hinder users' rational choices. It ordered Agoda to improve its procedures to ensure that users can easily verify refund conditions, cancellation and change fees, additional charges for deferred payments, and final payment amounts during the booking process, while also imposing a fine of 2.424 billion won.
Kim Jong-cheol, chairman of the BMC, stated, "As travel bookings increase, businesses must clearly and easily inform users about matters that affect contract agreements and cost obligations. We will continue to respond with a zero-tolerance policy against actions that hinder users' rational choices or infringe on their rights and will conduct ongoing monitoring."
Additionally, during the plenary meeting, the BMC approved the 2026 foreign capital contribution application submitted by Far East Broadcasting. The commission reviewed the nature of the contributing organization, the validity of the intended use of the funds, and the history of previous approvals before granting the application, and it plans to monitor the execution of the funds in accordance with the stated purposes.
Furthermore, the BMC recommended the appointment of four directors to the Korean Broadcasting System (KBS) to the president and appointed eight directors each to the Korea Broadcasting Culture Promotion Association and the Korea Educational Broadcasting System (EBS) effective July 10. The recommended KBS directors include Kang Myung-hyun, a professor at Hallym University; Park Sang-hoon, a lawyer at Hwawoo Law Firm; Woo Hyung-jin, a professor at Hanyang University; and Lim Jae-sung, a lawyer at Haemaru Law Firm, while the directors for the Broadcasting Culture Promotion Association and EBS were selected from eight nominees each recommended by their respective organizations.
* This article has been translated by AI.
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