The Korea Consumer Agency (KCA) and the Fair Trade Commission issued a parcel transaction damage prevention advisory on the 21st, saying consumer harm is expected to increase as parcel volume rises by more than 10% around Chuseok.

A view of the Korea Consumer Agency (KCA) in Eumseong County, North Chungcheong Province. /Courtesy of Korea Consumer Agency (KCA)

Each year, more than 300 applications for relief related to parcel delivery are filed with the Consumer Agency. There were 320 cases in 2022, 314 in 2023, 327 last year, and 188 in the first half of this year, totaling 1,149 cases over 3 years and 6 months. By type of damage, damage/breakage accounted for the most at 42.3% (372 cases), followed by loss at 37.1% (326 cases).

The Consumer Agency noted that even in cases of damage/breakage, many companies refuse compensation, and compensation is often delayed after loss incidents, indicating a need for improvement. Among parcel operators for which applications for relief were filed, CJ Logistics, which has the largest market share, accounted for the most at 30.0% (345 cases), followed by Kyungdong Parcel at 13.5% (155 cases), LOTTE Global Logistics at 12.1% (139 cases), GS Networks (GS25 convenience store parcel) at 10.8% (124 cases), and Hanjin at 10.1% (116 cases).

The Consumer Agency and the Fair Trade Commission held a meeting with the top five operators by number of complaints to share the results of their relief analysis and recommended that they actively respond to reduce consumer harm, including strengthening notices regarding exemption clauses and promptly proceeding with compensation procedures when incidents occur.

In addition, a "convenience store parcel scam," in which a buyer steals a product during a person-to-person transaction process, was identified as a new type of damage, and convenience store operators were asked to take precautions to prevent harm.

In one case, Person A sent a photo of the waybill after Person B, who had agreed to buy a smartphone via convenience store parcel, contacted A saying, "If you take a photo of the waybill and send it to me, I will deposit the payment." However, Person B did not deposit the money, went to the convenience store, showed only the "waybill photo," and stole the product.

To prevent damage, the Consumer Agency and the Fair Trade Commission urged that when requesting a parcel: ▲ accurately fill out shipment information (item value, type, quantity, address, etc.); ▲ prepare for breakage with packaging cushioning materials; ▲ keep supporting documents in case of a dispute; ▲ and, just before holidays, when parcel demand surges and the likelihood of product damage/loss and delivery delays increases, allow sufficient time before requesting delivery.

When receiving a parcel: ▲ if possible, receive it in person, or if delivery is to a designated location, take precautions against loss; ▲ and check immediately upon receipt for any damage or spoilage.

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