South Korea sets first standard contract terms for yoga, Pilates studios

When canceling a yoga or Pilates membership contract, refunds will now be calculated based on the actual amount paid — not the pre-discount price — and cancellation penalties will be set at 10% of the applicable fee. Operators planning to suspend or close must notify members at least 14 days before the scheduled date.

The Korea Fair Trade Commission announced Monday that it has established standard contract terms for the yoga and Pilates industry — the first of their kind — aimed at improving trade practices and preventing consumer harm in the sector.

Before drafting the standard terms, the Fair Trade Commission conducted a survey with the Korea Consumer Agency and found that unclear refund calculation standards were generating frequent disputes between operators and consumers when contracts were canceled or terminated.

The survey confirmed cases in which operators calculated refunds differently from what contracts stipulated, inflated the regular price to reduce refund amounts, applied additional deductions without prior notice, or demanded excessive penalties. Particularly common were cases in which operators, after offering a long-term prepayment discount, based the remaining fee on the original pre-discount price when a contract was canceled — effectively shrinking the refund.

In response, the standard terms specify that refunds must be calculated based on the actual amount paid, not the pre-discount price, and set the cancellation penalty at 10% of the applicable fee.

Because services are offered either on a session basis or a period basis, the terms establish separate refund formulas for each type. At the time of signing, consumers may choose their preferred service and refund method through one of two enrollment forms.

In addition, operators must notify members at least 14 days before a planned suspension or closure. Those enrolled in a surety insurance scheme must disclose the type and coverage of the insurance before the contract is signed, allowing consumers to confirm in advance whether they would be eligible for compensation from a guarantee institution if the business shuts down.

The terms also explicitly state consumers' right to withdraw from a subscription under applicable law and require operators to manage reservations appropriately so consumers have sufficient opportunity to use their sessions. A provision is also included allowing operators to dispose of unclaimed personal belongings after a set period, provided they give advance notice.

The standard terms take effect Monday. The Fair Trade Commission said it expects the new terms to reduce disputes between operators and consumers while improving the reliability and predictability of transactions in the sector.