- Expired unused discount coupons funded by partner businesses without compensation –
- Corrective order, notification order, and fines totaling KRW 1.54 billion imposed –
The Korea Fair Trade Commission (Chairperson Han Ki-jeong, hereinafter “KFTC”) has decided to impose corrective measures and fines on two domestic online accommodation booking platforms, Nol Universe Co., Ltd. (formerly Yanolja) and Yeogiotte Company Co., Ltd. (Yeogiotte), for unfairly disadvantaging small lodging businesses (motels). These companies sold advertising products bundled with coupons, the costs of which were borne by the lodging businesses, and unilaterally expired unused coupons without providing compensation. The fines imposed amount to KRW 540 million for Yanolja and KRW 1 billion for Yeogiotte.
In October 2024, Yanolja’s platform business division was spun off as Yanolja Platform Co., Ltd., and in December of the same year, it was merged into Interpark Triple Co., Ltd., with its name changed to Nol Universe.
The online accommodation booking market is characterized by a small number of dominant platforms connecting many lodging providers and consumers. Yanolja and Yeogiotte are the No. 1 and No. 2 players in this market, respectively. Since most small and mid-sized lodging businesses rely on these two platforms for customer acquisition, the platforms hold a superior bargaining position over the partner businesses.
On online platforms, advertising and discount coupons are core promotional tools that help lodging businesses attract consumers and increase sales. Exploiting this, the two platforms bundled coupons into high-priced premium advertising products. Yanolja tied coupons to its “Nearby Coupon Ads,” while Yeogiotte sold premium ad packages such as “TOP Recommendation” and “Popular Recommendation Package” that included coupons. The advertising fees paid by the lodging businesses already covered the cost of the coupons. For example, under Yanolja’s “Nearby Coupon Ads,” monthly advertising fees ranged from KRW 1 million to KRW 3 million, of which 10–25% was allocated to coupons.
Under this structure, when coupons paid for by lodging businesses went unused by consumers, the platforms unilaterally expired them without refund or carryover. Yanolja expired coupons at the end of the advertising contract period (typically one month), with only a one-time rollover allowed if the contract was renewed. Yeogiotte set coupon validity to effectively just one day, after which unused coupons expired.
This practice of expiring unused coupons constitutes abuse of superior bargaining position, as it unfairly disadvantaged partner businesses. Despite already paying for the coupon costs included in their advertising fees, lodging businesses incurred financial losses when unused coupons were expired. Such practices are also inconsistent with fair and normal transaction practices.
Accordingly, the KFTC ordered both platforms to cease the unilateral expiration of unused coupons. They were further ordered to notify partner businesses of the corrective measure. In addition, fines of KRW 540 million were imposed on Yanolja and KRW 1 billion on Yeogiotte.
※ Yanolja discontinued sales of its “Nearby Coupon Ads” in May 2024 while the KFTC investigation was ongoing, and Yeogiotte has also expressed its intention to discontinue coupon-linked advertising products.