No-Shows Costlier as Korea Raises Cancellation Fees for Fine Dining to 40%
Creatrip Team
3 months ago
Following the Netflix hit 'Chef & My Fridge' (흑백요리사) boosting interest in omakase (chef's choice) and fine dining (파인다이닝), South Korea's Fair Trade Commission raised recommended cancellation penalties for reservation-based restaurants. Previously capped at 10% of the total bill for no-shows, the new guidance allows up to 40% for high-end, reservation-dependent restaurants and 20% for general restaurants, reflecting typical food cost ratios. The rule also lets restaurants treating large group or bulk orders (e.g., 100 kimbap rolls) as reservation-based when customers fail to show. Restaurants must notify customers clearly—by text or similar—about penalty rules and late-arrival/no-show definitions in advance. Deposit limits were similarly raised to 40% for high-end venues and 20% for others. The changes also update cancellation penalty scales for weddings (with higher fees closer to the date and heavier penalties if the business cancels) and clarify free cancellation rules for accommodations and overseas travel in cases of natural disasters or government travel warnings. New guidelines address study-cafe disputes and reflect recent transport and standard contract updates.
