"You Passed," Paid 3.72 Million Won, Then… The Disappearing "Training Center"

Consumer complaints are surging regarding academy-style entertainment agencies that lure children, teenagers, and others dreaming of becoming celebrities or models with promises of passing auditions, only to induce high-priced contracts and subsequently refuse contract cancellations and refunds, prompting authorities to urge caution.

According to data released by the Korea Consumer Agency, a total of 366 grievance-relief applications related to academy-style entertainment agencies were filed from 2023 through June of this year.

By year, cases jumped 109.8 percent from 41 in 2023 to 86 in 2024, and rose another 72.1 percent year-on-year to 148 last year.

During the first half of this year, 91 cases were filed, marking a 75.0 percent increase compared to 52 cases during the same period last year.

Looking at the ages of the contract parties, children and teenagers accounted for the largest share at 184 cases (50.3 percent), followed by middle-aged adults aged 40 to 64 with 86 cases (23.5 percent), and young adults in their 20s and 30s with 83 cases (22.6 percent).

By type of damage, contract cancellation-related issues accounted for 361 cases (98.6 percent), representing the vast majority. Among business responses to contract cancellations, refusal to refund accounted for about half with 179 cases.

Other responses included delayed refunds in 90 cases, excessive penalty charges in 82 cases, and loss of contact in 7 cases.

Among 328 cases where the reason for contract cancellation was verified, simple change of mind by consumers was the most common at 245 cases (74.7 percent), but breach of contract by businesses also reached 79 cases (24.1 percent).

Among cases of contract breach, failures to provide or poorly executed acting or modeling training, project casting, and auditions were the most common, accounting for 58.2 percent with 46 cases.

Cases where advertisements promoting specific drama appearances or brand model selections differed from reality accounted for 30.4 percent with 24 cases.

In an actual damage case, a person identified as A visited a company after seeing an advertisement for senior models, took a camera test, and received a notice of acceptance.

Person A paid 3.72 million won and signed a two-year contract, but later discovered that the company was a general training center rather than an entertainment agency, leading them to demand a contract cancellation and refund.

In response to A's protest, the company stated it would issue a refund excluding the registration fee, two months of training fees, and the profile photography fee, but subsequently became unreachable.

The Korea Consumer Agency noted that cases where agreements were reached, such as consumers receiving refunds, stood at only 172 cases (47.1 percent).

The agency advised the public not to be dazzled by audition acceptance notices and to verify whether a company is capable of actually supporting entertainment industry activities.

It explained that since general entertainment agencies do not demand money from trainees under the pretext of training, contracts should be withheld if they demand profile consulting or management fees.

It also emphasized that verbal promises regarding guaranteed appearances should be explicitly stated as special terms in the contract, and that contract periods and refund criteria upon early termination must be thoroughly checked.
※ Please note: This article was translated by AI and may contain errors.