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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] South Korean prosecutors have indicted major lodging platforms Yanolja and Good Choice on charges of violating fair trade laws through abusive business practices against partner hotels.
The Seoul Central District Prosecutors’ Office announced on May 20 that both companies were charged without detention for allegedly exploiting their dominant market position. Shim Myung-seop, founder of Good Choice, was also indicted on the same charges.
According to prosecutors, the platforms sold advertising packages bundled with discount coupons to lodging businesses starting in 2017. Hotels, seeking visibility on the platforms, were effectively forced to purchase these bundled products.
The controversy centers on how unused coupons were handled. Yanolja reportedly invalidated all unused coupons after one month, while Good Choice set coupon validity to just one day, causing same-day expiration if not used.
As a result, unused coupon balances—KRW 35.9 billion for Good Choice and KRW 1.21 billion for Yanolja—were unilaterally forfeited and recognized as company revenue.
Prosecutors determined that these practices constituted an abuse of superior bargaining position, disadvantaging small and medium-sized lodging operators.
The case follows earlier action by the Fair Trade Commission, which imposed fines of KRW 1 billion on Good Choice and KRW 540 million on Yanolja. Both companies have challenged the penalties through administrative litigation.
Authorities, including the Ministry of SMEs and Startups, had requested a formal investigation, viewing the case as a significant example of platform-driven unfair practices affecting small business owners.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
