On May 13, 2025, the Korea Fair Trade Commission (the “KFTC”) announced its launch of a market study on subscription services.

According to the KFTC’s press release, the study aims to examine transaction practices throughout the entire service lifecycle from subscription to cancellation, identify potential consumer issues, and prepare measures to address them. Citing growing consumer complaints, the KFTC noted key concerns, such as inadequate disclosure of information by service providers at subscription or renewal, additional payments required for accessing parts of subscription services, and difficulties in cancelling subscription services.

To this end, the KFTC selected 37 service providers that offer services to Korean consumers and sent a formal written survey covering categories, such as customer service practices, disclosure of information, and cancellation policies and practices.

The KFTC plans to publish a policy report on “subscription economy and consumer issues” by the end of the year based on its findings and analysis by industry experts. The KFTC also explained in its press release that the market study is intended to enhance its understanding of market practice and that the companies’ responses will not be shared with other divisions within the KFTC for investigation purposes. Although there have been a small number of investigations launched following a market study in the past, in general, survey responses provided to the KFTC are not used as a direct basis for initiating investigations. However, they may have an impact on shaping the KFTC’s policy and the KFTC’s interpretations of relevant laws and regulations. Additionally, if specific concerns arise from the survey results, they could lead to further monitoring by the KFTC.

Overall, the KFTC’s market study appears to reflect its continued focus on subscription services and their impact on consumer welfare. Last year, the KFTC established a team to examine issues related to subscription services, such as barriers to cancellation and refusal to refund fees.

As the results of the market study are expected to inform the KFTC’s policy and enforcement direction, companies offering subscription-based services are advised to monitor developments and may wish to assess their current practices to ensure compliance with consumer protection standards.