Latest news with #KoreaConsumerAgency
Korea Herald
26-05-2025
- Korea Herald
After SKT data hack, no. of malicious apps trying to hack devices spikes
Increasing number of hacking apps pretend to be Korea Consumer Agency, suspected to be 'organized distribution' South Korea is seeing an increasing number of malicious mobile applications disguised as state or private consumer rights agencies, in the aftermath of a massive hacking attacks against SK Telecom. Local cyber security company Everspin said Monday that its Fake Finder service that detects malicious apps has found a substantial increase in programs distributed under pretense of helping consumers, who were affected by the recent data breach made public on April 22. Detections of fake apps falsely named the government-affiliated Korea Consumer Agency had been fluctuating to peak at just under 400 times in April, but the number spiked as high as 671 times between May 11 and May 18. The fake apps used in voice phishing in which victims are told their devices have been hacked via phone and text message, and are encouraged to install the malicious applications as a remedy. The attacks involve fake apps, including one carrying the name of SK Shielders, a cybersecurity company that is part of the SK Group and controlled by the SK Telecom. According to Everspin, four different malicious fake apps have been used to illegally obtain personal information, one of which was designed to intercept calls made to financial authorities and police. "Apps similarly named to (actual companies and government agencies) have been consistently detected in the past, but the recent numbers clearly indicate an organized distribution riding on a certain social issue," the security company said. IIn one of the largest consumer data breach cases in Korean history, SK Telecom's systems have been breached by yet-unidentified group of hackers since June of 2022. It is thought that 9.82 gigabytes of sensitive SIM-related data related to well over 20 million users have been stolen by the hackers.
Korea Herald
25-02-2025
- Business
- Korea Herald
S. Korea blocks sales of products recalled for safety concerns
Authorities have blocked sales of 1,336 items that were being distributed in South Korea despite being recalled overseas, which marked a 35.5 percent increase from the year before, the state-run consumer rights agency said Tuesday. The Korea Consumer Agency said that of the faulty items found to be sold here, 577 were caught for the first time while the remaining 759 were being redistributed after receiving warnings before. Of the 577 newly discovered faulty products, food accounted for 26.9 percent (149), electronic devices made up 25.8 percent (149), and children's items accounted for 14.6 percent (84). The KCA has been blocking local sales of items that have been recalled in other countries. The number of such products has been trending upwards in recent years from 807 in 2022 to 986 in 2023. The agency advised consumers buying products directly from overseas sellers to check whether the product had been recalled before via the Consumer Injury Surveillance System website or the Consumer 24 web portal.
Korea Herald
17-02-2025
- Business
- Korea Herald
Lunch prices are rising fast, but wages aren't keeping up
Finding an affordable lunch is becoming increasingly difficult for office workers in South Korea. The cost of eating out has surged over the past four years, far exceeding wage growth, and pushing more employees to rely on convenience store meals or company cafeterias. According to the Korea Consumer Agency, a bowl of kimchi-jjigae (kimchi stew), a typical go-to lunch option, cost an average of 8,269 won ($5.73) in Seoul as of December, 22.8 percent higher than in 2020. The price hike has been even steeper in cities like Daejeon, where the same dish jumped 52.3 percent over the four-year period, reaching 9,900 won ($6.87). The price of a roll of gimbap in Seoul, considered one of the most budget-friendly choices, climbed 32.7 percent over the same period, now costing 3,500 won. Dining out has become significantly more expensive overall. The price index for commonly eaten foods, including meals, coffee, and alcohol, rose 21.0 percent from 2021 to 2024 -- about 1.5 times higher than the general consumer inflation rate of 14.2 percent. The steepest increases occurred in 2022 and 2023 as food supply costs surged. Wages lag behind However, wage growth has lagged behind. South Korea's Ministry of Employment and Labor reports that the average monthly wage for employees at companies with at least one worker rose 14.9 percent between 2021 and 2024 -- barely keeping pace with overall inflation but failing to match the sharp rise in food prices. The situation is even tougher for workers at the bottom end of the pay scale, as the minimum wage increased by only 13.1 percent in the same period, from 8,720 won per hour in 2021 to 9,860 won in 2024. With lunch prices soaring, many office workers have turned to cheaper alternatives. A survey conducted in November by South Korean consumer research firm Embrain Trend Monitor found that 30.2 percent of workers now buy their meals at convenience stores or supermarkets, up from 22.0 percent in 2021. The use of company cafeterias has also grown, from 49.6 percent to 55.2 percent over the same period. Sales data from major convenience store chains reflect this shift. GS25 reported that lunchbox sales in 2024 were 3.2 times higher than in previous years, while rice ball sales rose nearly threefold. CU, another leading chain, saw sales of samgak gimbap (triangle-shaped rice balls) more than double. Despite these cost-cutting efforts, food expenses are taking up a growing share of household budgets. Statistics Korea data shows that in the first three quarters of 2024, the average urban household with two or more people spent 14.4 percent of its monthly budget -- 516,765 won -- on food. The portion spent specifically on dining out has risen from 12.4 percent in 2020 to 13.9 percent in 2022, reflecting the fact that eating out costs have climbed faster than overall inflation and income growth. As a result, meal allowances have become a major sticking point in labor negotiations. In 2024, university cleaning workers in Seoul gained public sympathy when they demanded an increase in their daily meal allowance from 2,700 won to 3,100 won. Their claim that '2,700 won isn't even enough for a single roll of gimbap' resonated with many South Koreans, leading to a successful labor agreement. The issue has also caught the attention of policymakers. At the end of 2024, an opposition-led special committee on wage protection proposed raising the monthly tax-exempt meal allowance from 200,000 won to 300,000 won to help workers cope with rising food costs. However, experts warn that only large corporations can afford to provide such benefits. Kim Jong-jin, director of the Korea Worker Institute, said, 'Low-wage workers are hit hardest by rising food prices. The government should consider tax benefits (for them) or a higher minimum wage to help them keep up.'
Korea Herald
11-02-2025
- Business
- Korea Herald
Can't cancel that subscription? Korea is cracking down on ‘dark patterns'
From frustratingly difficult-to-cancel subscriptions to hidden shipping fees, dark patterns -- manipulative online design tactics that trick consumers into spending more -- are widespread in South Korea's e-commerce market. Now, the government is taking action. Starting Feb. 14, the Korea Fair Trade Commission will enforce new regulations under the revised Electronic Commerce Act aimed at curbing misleading practices that obscure pricing, complicate cancellations and pressure users into unwanted purchases. Dark patterns pervade South Korea's digital landscape. A 2024 report by the Korea Consumer Agency found that 47 new types of dark patterns emerged last year, adding to the 429 cases identified in a 2023 investigation of major online shopping platforms. The most common complaints included: Hidden fees, such as shipping charges, that only appear at the final stage of checkout False urgency, where sales countdowns reset indefinitely to pressure shoppers into hurried purchases Preselected add-ons, such as travel insurance automatically included when booking flights Obstructed cancellations, making it unnecessarily difficult to unsubscribe from a service Repeated pop-ups, aggressively urging users to reconsider their decisions The rapid evolution of these deceptive tactics has made enforcement difficult. New variations of dark patterns are discovered almost weekly, according to the KCA. What the new regulations change The KFTC's new regulations introduce stricter consumer protection rules in four key areas: Subscription services: Businesses must notify users at least 30 days before converting free trials into paid subscriptions or raising prices. Without this, they face fines or up to a one-year business suspension. Transparent pricing: Retailers must clearly display the total cost upfront rather than revealing extra fees (such as shipping or service charges) in later steps of the transaction. If certain costs cannot be displayed immediately, the reason must be clearly explained. No more forced add-ons: Companies cannot pre-select optional services or products without user consent. For example, airline websites can no longer automatically add travel insurance to ticket purchases. Simpler cancellations: Deliberately hiding, complicating or obscuring the cancellation process is now prohibited. Companies that violate these rules face fines that increase with repeated offenses, up to 5 million won ($3,450) for the third violation and subsequent offenses. Repeat offenders may also face a one-year suspension of operations. Is the law strong enough? While the law is an important step toward fairer digital commerce, experts warn that enforcement challenges remain. The fines are relatively small, especially for major Korean tech firms and e-commerce giants. Unlike more direct legislation in the US and European Union, like the California Online Privacy Protection Act and the EU's Digital Services Act, South Korea's approach does not provide a clear mechanism for compensating consumers who have already been misled. 'Right now, the Korea Fair Trade Commission can only respond within the limits of its enforcement powers through continuous monitoring. If a more long-term solution is needed, it should be addressed through stricter legislation. Stronger penalties are necessary to deter businesses that repeatedly engage in these deceptive practices,' said Lee Jung-hee, a professor of economics at Chung-Ang University.
