▲ Korea Consumer Agency
The Korea Consumer Agency has issued a consumer safety alert regarding an increase in complaints related to 'reward-based' online education services, particularly among consumers in their 20s and 30s.
Reward-based online education services are products that offer cash-like points, credits, or tuition refunds when certain conditions are met.
Out of 4,202 complaints related to online education services filed with the agency over the past five years, 2,024 cases (48.2%) were from consumers in their 20s and 30s.
Among these complaints from the 20s and 30s demographic, 623 cases (32.3%) were related to reward-based services, such as promises of tuition refunds upon passing an exam or receiving cash-like points or credits after completing a certain amount of coursework.
In particular, excessive penalty charges upon contract cancellation or termination accounted for the highest number of complaints at 212 cases (34%), followed by cases where companies failed to pay out promised rewards despite consumers meeting the conditions, which accounted for 153 cases (24.6%).
Other complaints included failure to fulfill extensions or renewals (105 cases, 16.9%), false or exaggerated advertising that differed from the actual content (57 cases, 9.1%), and insufficient information provision (35 cases, 5.6%).
Meanwhile, an analysis of 1,936 cases where the type of service could be identified among consumers in their 20s and 30s showed that foreign language courses (629 cases) were the most common, followed by job and employment competency training (464 cases), civil service exam preparation (235 cases), and professional certification courses (204 cases). Notably, complaints related to foreign language, job and employment competency, and investment or side-hustle lectures have surged since 2024.
In response, the Korea Consumer Agency advised consumers to carefully check the conditions for receiving rewards, as well as the criteria for refunds and penalty deductions in the event of early contract termination. The agency also urged consumers to be cautious and not be misled by promotional phrases promising full refunds or cash rewards.
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