[Anchor]

Joining us for Tuesday's Friendly Economy is reporter Han Jiyeon. Han, are the terms and conditions for yoga and Pilates studios changing?

[Reporter]

Yes. From now on, businesses must notify members of their closure at least 14 days in advance. Additionally, they must disclose whether they have subscribed to guarantee insurance before signing a contract.

Many people sign up for long-term memberships because studios offer discounts for multi-month payments. The problem is that if a studio suddenly shuts down, members often cannot get their remaining money back.

In fact, according to a survey by the Korea Consumer Agency, 9.9% of Pilates users and 11.5% of yoga users—roughly 1 in 10—reported that they were unable to receive refunds due to a studio's closure. The average amount lost was around 250,000 won.

To address this, the Fair Trade Commission has created new standard terms and conditions for yoga and Pilates studios. Businesses are now required to notify members of a closure at least 14 days in advance. Furthermore, members will be able to check before signing a contract whether the studio has purchased guarantee insurance, which ensures an insurance company covers the refund if the business closes.

[Anchor]

Are the refund regulations changing as well?

[Reporter]

Yes. From now on, refunds for used services must be calculated based on the actual payment amount, not the original price before discounts. Many studios offer discounts for long-term contracts, but when a member tries to cancel midway, they calculate the refund based on the original price, significantly reducing the amount returned.

These new standard terms clarify this issue. Refunds must be calculated based on the actual amount paid, and the penalty fee for cancellation has been standardized at 10% of the usage fee. Additionally, contracts must clearly state whether the membership is based on a fixed period or a set number of sessions, and the refund amount in case of early termination must be disclosed in advance.

While these are standard terms and not mandatory, they are recommended for use, so it would be wise to check if your contract includes these provisions.

[Anchor]

What is the last topic about?

[Reporter]

This concerns a new type of fraud where illegal loan sharks pretend to lend money using non-existent mobile phones to charge high interest rates. This scheme has recently been uncovered.

In the past, there was a known method called phone flipping, where people would open a mobile phone contract, sell the device to a broker for cash, and continue paying the installments to the telecom company. In that case, at least a real phone existed.

However, the scheme recently uncovered goes a step further: the mobile phones do not exist at all. The fraudsters approach people in urgent need of money and suggest, "If you register as a delivery service business, we will lend you money." Registering as a business allows them to write contracts as if they are leasing multiple mobile phones, which is easier than doing so as an individual.

This is where the actual fraud begins. Even though there is no physical device or SIM card activation, they make the victim sign a confirmation letter stating that they have "received the mobile phone." The victims know there is no physical device in front of them, but because they are in urgent need of money, they trust the claim that "it is just for paperwork" and sign it.

The fraudsters then lend cash using this fake contract as collateral and force the victim to pay it back daily under the guise of a "mobile phone rental fee." In one actual case, they faked a contract for 10 mobile phones worth 18 million won and demanded 170,000 won per day for 200 days as a rental fee. This amounts to an annual interest rate of over 160%.

They do this because simply saying "we provide high-interest loans" makes the illegality obvious. By labeling it a "rental fee," they can claim they are a rental company if caught. If the victim fails to pay, they can use the signed confirmation as leverage, threatening to sue the victim for fraud by claiming, "You received the phones and didn't pay."

The Financial Supervisory Service advises that if a loan requires business registration or a rental contract for non-existent items, you should be suspicious. If you receive such a request, do not sign the contract and report it immediately to the police at 112 or the Financial Supervisory Service at 1332.