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The Korea Communications Commission. (Image credit: Yonhap) |
[Alpha Biz= Kim Jisun] Seoul, August 31, 2025 — South Korea’s Korea Communications Commission (KCC) has launched a fact-finding investigation into two “smart workbook” operators that offer online learning services for preschool and elementary students, amid allegations they imposed excessive fees on users who cancel mid-contract.
The KCC said on the 31st it is examining whether the companies violated prohibitions under the Telecommunications Business Act, focusing on charges labeled as membership cancellation fees, contract termination penalties, and payback of “promotional (contract) discounts.”
The “smart workbook” market has expanded rapidly since the pandemic, driven by demand for remote learning and the adoption of AI technologies, but user complaints have also increased. Since January, the KCC has conducted a market review and confirmed that some services require customers who cancel early to pay the remaining device installments and additional penalties on content usage fees.
The Commission noted these fees are structurally designed to accumulate over time, becoming particularly heavy in the latter part of the contract, effectively making cancellation difficult. Compared with other learning providers that do not charge content-related early-termination penalties — and with telecom services (mobile/Internet) where penalties typically rise early and then decline mid-term — the KCC views the smart-workbook fees as excessive.
In one case, an operator allegedly waived penalties for certain users only, which the KCC said could constitute discriminatory provision of economic benefits among users. If violations are confirmed, the Commission plans to impose corrective orders and surcharges (fines) in accordance with applicable laws.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
