Seoul, South Korea – South Korean consumers are increasingly falling victim to medical clinics that close unexpectedly, leaving patients with unpaid bills. According to the Korea Consumer Agency, complaints about medical institutions shutting down without notice have been on the rise in recent years.
Between January 2021 and September 2023, the agency received 964 complaints related to the closure of medical facilities. The number of complaints has been steadily increasing, with 196 in 2021, 247 in 2022, and 275 in 2023. This year alone, the agency has already received 246 complaints, a 21.8% increase compared to the same period last year.
The most common complaint was related to the inability to receive refunds for pre-paid treatments, accounting for 687 cases (71.2%). Complaints about interrupted treatments followed, making up 18.5% of the total.
Dental and dermatological clinics were the most frequently reported, accounting for 34.4% (332 cases) and 29.0% (280 cases) of complaints, respectively. Plastic surgery clinics and traditional Korean medicine clinics also reported a significant number of cases.
Regulatory loopholes
Under South Korean law, medical institutions are required to post a notice on their website at least 14 days before closing. However, many clinics have been found to shut down without providing any prior notice. Even when a notice is posted, consumers may not be aware of it, especially if they don't regularly visit the clinic's website.
Consumer advice
To protect themselves, consumers are advised to obtain a detailed contract that specifies the treatment and its cost. The Korea Consumer Agency also recommends using credit cards for installment payments rather than paying in cash. In the event of a clinic closure, consumers can exercise their right to dispute the charges with their credit card company.
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