logo
Can't cancel that subscription? Korea is cracking down on ‘dark patterns'

Can't cancel that subscription? Korea is cracking down on ‘dark patterns'

Korea Herald11-02-2025
From frustratingly difficult-to-cancel subscriptions to hidden shipping fees, dark patterns -- manipulative online design tactics that trick consumers into spending more -- are widespread in South Korea's e-commerce market. Now, the government is taking action.
Starting Feb. 14, the Korea Fair Trade Commission will enforce new regulations under the revised Electronic Commerce Act aimed at curbing misleading practices that obscure pricing, complicate cancellations and pressure users into unwanted purchases.
Dark patterns pervade South Korea's digital landscape. A 2024 report by the Korea Consumer Agency found that 47 new types of dark patterns emerged last year, adding to the 429 cases identified in a 2023 investigation of major online shopping platforms. The most common complaints included:
Hidden fees, such as shipping charges, that only appear at the final stage of checkout
False urgency, where sales countdowns reset indefinitely to pressure shoppers into hurried purchases
Preselected add-ons, such as travel insurance automatically included when booking flights
Obstructed cancellations, making it unnecessarily difficult to unsubscribe from a service
Repeated pop-ups, aggressively urging users to reconsider their decisions
The rapid evolution of these deceptive tactics has made enforcement difficult. New variations of dark patterns are discovered almost weekly, according to the KCA.
What the new regulations change
The KFTC's new regulations introduce stricter consumer protection rules in four key areas:
Subscription services: Businesses must notify users at least 30 days before converting free trials into paid subscriptions or raising prices. Without this, they face fines or up to a one-year business suspension.
Transparent pricing: Retailers must clearly display the total cost upfront rather than revealing extra fees (such as shipping or service charges) in later steps of the transaction. If certain costs cannot be displayed immediately, the reason must be clearly explained.
No more forced add-ons: Companies cannot pre-select optional services or products without user consent. For example, airline websites can no longer automatically add travel insurance to ticket purchases.
Simpler cancellations: Deliberately hiding, complicating or obscuring the cancellation process is now prohibited.
Companies that violate these rules face fines that increase with repeated offenses, up to 5 million won ($3,450) for the third violation and subsequent offenses. Repeat offenders may also face a one-year suspension of operations.
Is the law strong enough?
While the law is an important step toward fairer digital commerce, experts warn that enforcement challenges remain. The fines are relatively small, especially for major Korean tech firms and e-commerce giants. Unlike more direct legislation in the US and European Union, like the California Online Privacy Protection Act and the EU's Digital Services Act, South Korea's approach does not provide a clear mechanism for compensating consumers who have already been misled.
'Right now, the Korea Fair Trade Commission can only respond within the limits of its enforcement powers through continuous monitoring. If a more long-term solution is needed, it should be addressed through stricter legislation. Stronger penalties are necessary to deter businesses that repeatedly engage in these deceptive practices,' said Lee Jung-hee, a professor of economics at Chung-Ang University.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Seoul shares up for 3rd day amid US tariff uncertainties; won sharply down
Seoul shares up for 3rd day amid US tariff uncertainties; won sharply down

Korea Herald

time9 hours ago

  • Korea Herald

Seoul shares up for 3rd day amid US tariff uncertainties; won sharply down

Seoul shares closed slightly higher Friday, extending their winning streak to a third day, as investors kept a close eye on the ongoing tariff negotiations between South Korea and the United States, which is expected to have a huge impact on the economy. The Korean won lost ground against the US dollar. The benchmark Korea Composite Stock Price Index added 5.6 points, or 0.18 percent, to close at 3,196.05. Trade volume was moderate at 385.7 million shares worth 9.8 trillion won ($7.1 billion), with losers outnumbering winners 504 to 370. Foreigners and institutions bought shares worth 268.9 billion won and 110.4 billion won, respectively, while retail investors unloaded 461.3 billion won. Overnight, Wall Street closed mixed, with the tech-heavy Nasdaq composite and the S&P 500 up 0.18 percent and 0.07 percent, respectively, while the Dow Jones Industrial Average shed 0.7 percent. Investors were paying close attention to whether Seoul will also strike a trade deal with Washington following Japan as Korea's top trade officials met with US Commerce Secretary Howard Lutnick in the US capital on Thursday (local time). In the meeting, the two sides reaffirmed their commitment to striking a trade deal before the Aug. 1 deadline and agreed to soon hold an additional round of negotiations, according to the Seoul government. "The market appears to have been relieved on news that Korea's industry minister and trade minister met with Lutnick, but the KOSPI showed limited growth due to persisting uncertainties ahead of the looming negotiation deadline," Lee Kyoung-min, an analyst at Daishin Securities, said. In Seoul, tech giant Samsung Electronics edged down 0.15 percent to 65,900 won, while its chipmaking rival SK hynix lost 1.3 percent to 266,000 won. Leading battery maker LG Energy Solution shed 1.22 percent, reflecting Tesla's 8.2 percent slide overnight. Bio shares also lost ground, with Samsung Biologics falling more than 2 percent to 1.06 million won and Celltrion down 1.33 percent to 178,000 won. Top automaker Hyundai Motor went down 0.46 percent to 216,500 won and its sister Kia retreated 0.86 percent to 104,100 won as they both posted a decrease in operating profits in the second quarter mainly due to the effects of 25 percent tariffs on all imported cars imposed by the Donald Trump administration. On the other hand, financial and shipbuilding shares delivered strong performances. KB Financial climbed 1.37 percent to 118,800 won and Shinhan Financial advanced 2.74 percent to 71,200 won. Major shipbuilder HD Hyundai Heavy soared 5.83 percent to 444,500 won, and its rival Hanwha Ocean gained 1.35 percent to 90,000 won on expectations for cooperation in the sector with the US Internet portal operator Naver also jumped 3.3 percent to 234,500 won, while Kakao Pay, the fintech arm of Kakao, shot up 10.71 percent on massive purchases by global investment bank Goldman Sachs. The local currency was quoted at 1,377.9 won against the US dollar at 3:30 p.m., down 10.7 won from the previous session. (Yonhap)

Miracell launches Korea's first generative AI voice system for hospitals
Miracell launches Korea's first generative AI voice system for hospitals

Korea Herald

time10 hours ago

  • Korea Herald

Miracell launches Korea's first generative AI voice system for hospitals

Korean stem cell research company Miracell has introduced the nation's first generative AI-powered voice consultation system designed for medical institutions. Co-developed with Europe-based Vee, a Warsaw-listed AI company, the solution marks a major shift in healthcare automation. The company said Monday it has secured exclusive distribution rights for Vee's AI solution across Asia and is working closely with Vee Korea to customize the system for local hospitals. Unlike traditional rule-based ARS systems, the new AI tool uses natural language processing to deliver 24-hour conversational support, handling appointment scheduling, billing inquiries, patient reminders and general questions. The system is particularly effective during nights and weekends, when staffing is limited. It integrates with hospital customer relationship management systems and supports both inbound and outbound calls. Hospitals can trial the solution free for one month, lowering the adoption barrier. 'Generative AI can dramatically improve service quality in medical care,' said Shin Hyun-soon, CEO of Miracell. 'This isn't just an upgrade — it's a survival strategy for the health care sector.' Vee provides the underlying large language model engine, customized for Korean language and clinical context. A future version will link with Miracell's Celldoc platform, integrating patient consultations, appointments, and treatment records into a single interface. By combining its stem cell expertise with cutting-edge AI, Miracell aims to set a new standard in the health care industry. 'We're starting with clinics already using Smart-MCell,' a Miracell spokesperson said. 'But this is just the beginning. With AI, we hope to bring patients and caregivers even closer, and open the door to a more responsive, intelligent health care experience.'

Stimulus coupon applications top 57% in 4 days $3.8b already distributed
Stimulus coupon applications top 57% in 4 days $3.8b already distributed

Korea Herald

time11 hours ago

  • Korea Herald

Stimulus coupon applications top 57% in 4 days $3.8b already distributed

More than half of eligible recipients have applied for stimulus vouchers just four days after the launch of the nationwide program, the Ministry of the Interior and Safety said Friday. According to the ministry, 28.9 million people, or 57.1 percent of those eligible, including all Korean citizens and some foreign residents, had submitted applications by Thursday, with a total of 5.21 trillion won ($3.79 billion) in coupons distributed. In Incheon and Sejong, the application rates exceeded 60 percent. South Jeolla Province and Jeju Island both saw relatively lower rates at 53.2 percent, with 943,325 people applying in South Jeolla Province and 351,996 in Jeju Island. In Seoul, 5.2 million people had applied, accounting for 57 percent of those eligible. The coupon program began on July 21, marking its fifth day on Friday. This week, applications were accepted on designated days according to the last digit of an applicant's birth year. On Friday, those born in years ending in 5 or 0 were eligible to apply. Starting this weekend and continuing through the end of the first round of applications at 6 p.m. on Sept. 12, applications can be submitted regardless of birth year. The coupons can be used from the day after application until Nov. 30 at small businesses with annual sales under 3 billion won.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store