Sejong Center for the Performing Arts. (Yonhap)
SEOUL, Dec. 14 (Korea Bizwire) — The South Korean operators of major performing arts theaters have decided to correct the terms and conditions of contracts that have been criticized as ‘venue rental gapjil.’
The word ‘gapjil’ is used to describe a situation in which a higher-ranked person abuses people who are of lower standing.
The Fair Trade Commission announced on Monday that it reviewed the unfair terms and conditions in the venue rental contracts for five major public and private arts halls, including the Sejong Center for the Performing Arts, and all of the venue operators voluntarily agreed to correct the terms and conditions.
The operators, in particular, corrected the terms that require those who rent the venue to pay 40 to 100 percent of the rental fee as a penalty if they cancel the contract.
Considering that the preparations for various performances and events take at least six to nine months, the operators decided to minimize cancellation fees for those canceling contracts more than nine months in advance.
If contracts are cancelled after that period, the operators can levy a certain proportion of the cancellation fee within the range of damages suffered. However, the cancellation fee can be adjusted if alternative performances or events are arranged.
Down payments, which were typically about 30 percent of the rental price, will be lowered to 10 to 15 percent. The remaining balance that needed to be paid six months before the date of performance will be paid three months before the date of ticket sales.
When performance contracts are cancelled due to administrative orders placed for infectious diseases like coronavirus, a new term was created for the return of rental fees for the days when the performing arts theaters cannot be used.
J. S. Shin (js_shin@koreabizwire.com)
