Foreign airlines operating in South Korea are facing a consumer complaint rate three times higher than that of domestic carriers. (Image courtesy of Yonhap)
SEOUL, Sept. 5 (Korea Bizwire) – As international travel demand surges, foreign airlines operating in South Korea are facing a consumer complaint rate three times higher than that of domestic carriers, according to a report released on September 4 by the Korea Consumer Agency (KCA).
The KCA reported that from last year through the first half of this year, it received 2,863 complaints related to air passenger transport services. Of these, 1,440 were against domestic airlines and 1,243 against foreign carriers.
When adjusted for passenger volume, foreign airlines received 3.6 complaints per 100,000 passengers, compared to 1.2 for domestic carriers. The settlement rate for these complaints was also lower for foreign airlines at 51.2%, about 9 percentage points below the 59.9% rate for domestic airlines.
Notably, 41.8% (520 cases) of the complaints against foreign airlines were concentrated among six carriers. VietJet Air led the list, followed by Philippines AirAsia, Thai AirAsia X, Philippine Airlines, Etihad Airways, and Turkish Airlines.
The most common complaints against these six airlines involved refusal to refund tickets and excessive cancellation fees, which accounted for 60.6% (315 cases) of the issues.
Flight cancellations and delays were the next most frequent problem at 22.5% (117 cases), followed by insufficient information provision at 3.7% (19 cases), and damage or loss of checked baggage at 3.3% (17 cases).
In many cases of refund refusals and excessive fees, airlines were charging high cancellation fees immediately after purchase or outright refusing refunds. There were also numerous cases of delayed refunds stemming from financial difficulties during the COVID-19 pandemic.
For instance, in April, a consumer purchased seven round-trip tickets from Seoul to Phu Quoc, Vietnam, for 7.67 million won. Upon canceling the next day, the airline deducted about 15% (1.26 million won) as a cancellation fee.
Flight cancellations and delays were often met with unilateral refusals for compensation without detailed explanations. Many complaints also arose from airlines failing to provide timely notifications or adequate accommodations during delays.
In response to these issues, the KCA has recommended that the six airlines implement policies to protect consumers who mistakenly purchase tickets or request cancellations shortly after booking.
The agency also advised airlines to minimize passenger inconvenience during cancellations or delays and provide specific reasons for such disruptions.
The airlines have responded with plans to operate 24-hour customer service centers and establish internal regulations to address these concerns.
A KCA official advised consumers to “check cancellation policies and penalty clauses before purchasing tickets, and regularly verify flight schedules as they may change.”
The official also emphasized the importance of inspecting checked baggage upon receipt and immediately reporting any damage or loss to the airline.
Ashley Song (ashley@koreabizwire.com)
