A Survey of Consumer Harm in Cross-Border Transactions from the Korea Consumer Agency

cross-border transactions

Contributed by Korea Consumer Agency

Consumer complaints regarding cross-border transactions are rising. The growth in online overseas purchases and a rebound in overseas travel has driven this increase. Korea’s trends are consistent with econsumer.gov Complaint Trend Data which shows “online shopping” as the top reported complaint category by consumers in 2023. The “vacation and travel” category ranked fourth for top categories reported by consumers in 2023. Accordingly, the Korea Consumer Agency (KCA) surveyed consumers who purchased goods and services from overseas online markets within the past year about their experiences. Key results include the following.

Online Shopping

According to a survey of 500 respondents who purchased goods from overseas, consumers in Korea most frequently used "purchase proxy services", often through a third-party platform that purchases products from overseas shopping malls on behalf of consumers. Among these consumers, 10.2% responded that they had experienced harm. The most common types of harms resulting from overseas purchases were receiving a product that was different from what was ordered (51%), and encountering delivery issues such as damaged items, lost products, and delays (41.2%).

Vacation and Travel

With regard to lodging and airplane tickets, the survey showed that consumers tended to use online platforms, such as an online travel agency (OTA), rather than reserving directly on the hotel's or airline's website. Payment-related harms were more common in cross-border transactions. 38.8% of respondents experienced problems such as overcharges or duplicate or unauthorized charges while reserving accommodations. In the case of airline reservations, excessive penalties for cancellation or modification were the most common issue, reported by 46.4% of respondents.

To prevent consumer harm during cross-border transactions, keep in mind the following tips:

  • Review the conditions before making a purchase. There may be additional requirements for ending a subscription, changing or canceling a reservation, or returning an item.

  • Check the business information and terms of use on the official website before entering a contract.

  • If there is a local office or customer center, go in person to resolve the harm.

  • Learn ways to contact the retailer or platform operator, for example with a 24-hour hotline, email, or chatbot.

If you believe you have encountered a cross-border scam, report it to: