Photo = Fair Trade Commission

 

[Hanteo News = Reporter KANG SUYOUNG] The Fair Trade Commission has taken action against K-POP companies. If you are a K-POP fan, you may have experienced joining the fan club of an artist you like, only to find that the expected benefits were not there, that content decreased because a member left, or that you were told you could not receive a refund when you tried to withdraw midway due to personal circumstances. That complaint has now been legally confirmed.

 

The Fair Trade Commission announced today (10th) that it reviewed the paid fan club membership terms of use of a total of 24 operators, including 18 entertainment companies such as SM ENTERTAINMENT, BIGHIT MUSIC, YG ENTERTAINMENT, BELIFT LAB, and CUBE ENTERTAINMENT, as well as six fandom platform companies including WEVERSE COMPANY, KAKAO ENTERTAINMENT, and CJ ENM, and had them voluntarily correct eight types of unfair terms. The key issue was that the structure made refunds virtually impossible in the event of mid-term withdrawal.

 

Paid fan club memberships are priced at around 20,000 won to 30,000 won per year. Based on artists on Weverse, artists under HYBE-affiliated agencies such as BIGHIT MUSIC and BELIFT LAB charge 25,000 won per year, artists under SM ENTERTAINMENT charge 30,000 won per year, and other agencies charge around 20,000 won to 21,000 won. The amount itself may not seem large, but many fans subscribe to memberships for multiple teams, and the number cannot be ignored considering that Weverse digital membership subscribers have increased rapidly since 2023, reaching about 600,000 as of the 1st quarter of 2026. As the K-POP market has grown into an industry worth 7.9 trillion won, the paid membership market has also grown at the same pace.

 

The problem is that consumer protection has lagged behind while this market has grown. The most important unfair clause pointed out this time is the restriction on refunds. BIGHIT MUSIC stated that refunds are not possible if more than seven days have passed since joining or if any benefit has been used, while P NATION stipulated outright that “refunds and withdrawal due to simple change of mind are not possible.” It was a structure in which the entire membership fee effectively functioned as a penalty. In the case of YG ENTERTAINMENT, it stated that even if benefits changed due to an artist member’s withdrawal or replacement, refunds were not possible if the agency was not at fault. In other words, even if the content featuring the member a fan liked disappeared because a member changed, there was no way to receive relief.

 

Why had this problem been left unattended for so long? Unlike ordinary subscription services, fan club memberships have no alternatives. If you want to engage in fandom activities for the artist you like, you have no choice but to purchase the membership on the platform where that artist is registered. There is no other way to participate in music show pre-recordings or receive concert pre-sale benefits. The Fair Trade Commission also specified this point as part of the background for its review. On top of that, the unique psychology of fandom culture also played a role. Requesting a refund for a membership joined out of affection for an artist can feel like it conflicts with one’s identity as a fan. In other words, an emotional structure that makes it difficult to assert rights as a consumer allowed unfair terms to be tolerated for a long time.

 

Once the corrections are completed, full refunds will be possible if there is no usage history within seven days of joining, and even if seven days have passed or there is usage history, users will be able to receive the remaining amount after deducting a penalty fee, which is 10% of the membership fee, and the amount used. However, the refund-related clauses are scheduled to take effect within this year after operators complete system development, meaning more time will be needed before they are actually applied. The fandom economy has long since established itself as an industry, but it is only now that fans are beginning to be protected as consumers within it.

 

grace@hanteo.com