- Clear disclosure of studio photography, dress rental, and makeup service details and pricing to prevent ambiguous contracts
- Explicit guidelines on cancellation fees and requirement for consumer consent to prevent related disputes
The Korea Fair Trade Commission (KFTC, Chairperson Han Ki-jeong) has established the “Standard Contract for Wedding Planning Services” to improve transaction practices and prevent consumer harm in the wedding planning industry.
The number of consumer complaints reported to the Korea Consumer Agency has been increasing annually: 790 cases in 2021, 1,117 in 2022, and 1,293 in 2023.
This initiative is part of the Youth-Friendly Service Development Plan announced in March of last year, aiming to address longstanding consumer grievances related to unfair contract terms and excessive cancellation fees in the so-called “S.D.M.” services (Studio photography, Dress rental, Makeup).
To create this standard contract, the KFTC conducted a six-month market survey to identify structural issues in the wedding planning industry. Based on the findings, the commission held four public hearings between September and December 2024 with major industry stakeholders, consumer groups, and related organizations to ensure the final version fairly reflects both consumer and service provider interests.
Key Contents
1. Provision of Service Details and Pricing
Since most engaged couples sign bundled (package) contracts with wedding planning agencies, it is common for them to enter into so-called “blind contracts” without knowing the exact cost of each S.D.M. service. Additional “options” not clearly explained at the time of contract can also result in unexpected extra charges.
To address this, the standard contract requires detailed listing of services and pricing, enabling couples to fully understand the total cost before signing.
A front cover format for the contract has been developed to clearly display the basic services (studio, dress, makeup) and optional add-ons (e.g., designated staff, dress assistants, hairpieces). Services previously considered optional but essentially mandatory are now included as basic services to prevent hidden costs.
Additionally, a pricing table must be included for both basic and optional services, and service providers are required to offer and explain this upon request (Article 3).
2. Specific Cancellation Fee Guidelines
According to a YWCA survey, due to the long period between signing and the actual wedding, cancellations and changes often occur. However, vague cancellation fee standards have led to unfair disadvantages for consumers.
Therefore, the standard terms specify detailed refund and cancellation fee policies. The amount depends on which party (the agency or the consumer) is at fault and whether the service has already begun (Article 10).
Moreover:
- Before selecting partner vendors, the average cancellation fees must be disclosed and explained.
- Once vendors are selected, their specific cancellation policies must be provided again with consumer consent.
- If the consumer is at fault for cancellation, the agency may claim full or partial compensation equivalent to the damages owed to its vendors, ensuring the agency’s business interests are reasonably protected.
3. Other Provisions
- The contract confirms the consumer’s right to withdraw their offer in accordance with relevant laws (Article 4).
- If the agency changes services due to its own fault, it cannot demand additional charges (Article 7).
- If the agency subscribes to a payment guarantee insurance, details must be disclosed to the consumer (Article 8).
Expected Impact and Future Plans
With the new standard contract, engaged couples can now clearly compare S.D.M. services and prices, allowing them to make reasonable decisions within their budgets. This is expected to reduce the financial burden of wedding preparation and, over time, lower the psychological barrier to marriage.
For wedding planning agencies, the contract ensures legitimate business returns and helps prevent unnecessary disputes. If widely adopted, the standard terms are expected to build consumer trust and stimulate the wedding planning market.
The KFTC will publish the standard contract on its website and notify industry and consumer associations, strongly encouraging its use. The “Standard Contract for Wedding Planning Services” was released on April 3 and is recommended for immediate implementation. Training sessions will also be conducted to help the industry adopt the new terms without confusion.