<Editor’s Note>
When purchasing a product, we first check the price tag. But can we accurately assess the value of a product based solely on that number? When capacities differ, simple price comparisons become challenging, and various fees or additional costs can alter the final payment amount. There is often a significant difference between the price displayed and the actual costs borne by consumers, as well as the value they receive for their money. 'The Hidden Secrets of Pricing' examines the structure of prices we encounter in daily life and highlights the differences in costs and value that consumers may overlook.
“What remains for consumers after a subscription ends?”
Subscription services offer advantages over one-time purchases by lowering initial costs and providing regular maintenance and customer service. However, consumer dissatisfaction can arise during the contract termination process due to penalty fees or repair issues. Additionally, it is essential to consider what happens to ownership of the product after the contract ends and how long users can access purchased digital content.
Consumers prioritize information about 'total costs' and 'consumer selling prices' when entering contracts. However, a survey by the Korea Consumer Agency revealed that some major appliance subscription providers did not display total costs and consumer selling prices for all items on their websites. As a result, the agency recommended expanding the disclosure of relevant information and establishing measures for situations where repairs are not possible. Furthermore, it advised informing consumers of important considerations before and after signing contracts.
However, domestic companies have been found to impose different penalty fees based on the termination timing and subscription items. The Korea Consumer Agency noted that “Samsung Electronics and LG Electronics impose penalties based on the termination timing, while Coway and Cuckoo Homesys impose penalties based on the subscription items, ranging from a minimum of 10% to a maximum of 30%.”
The situation after the contract ends also varies depending on the contract duration and expiration conditions. Some products allow for ownership transfer upon contract completion, while others may require the return of the product or have additional conditions for ownership transfer.
The regular maintenance and customer service provided during the contract period may also change after the contract ends. This is why it is crucial to consider not only the costs during the contract period but also the conditions for ownership transfer and the continuity of management services after expiration when comparing subscription fees.
For instance, in December 2023, the game 'The Crew' announced plans to end its service, and by March 2024, the servers were actually shut down. The developer also announced that access to the game would be terminated across all platforms, including PC and consoles. Even users who purchased the game in physical format found themselves unable to play due to the server shutdown.
This has sparked the 'Stop Killing Games' movement in Europe, opposing the practice of distributors blocking access to purchased games without alternatives. The movement demands reasonable solutions that allow users to continue playing games even after the service ends.
Additionally, in June 2026, the European Commission stated that it would not propose a legal obligation to ensure continued access to games after service termination at this stage. Instead, it plans to promote the establishment of termination response standards involving industry and consumer groups.
In South Korea, issues regarding access rights to digital content have also emerged. In 2025, Yes24 experienced a ransomware attack that temporarily disrupted access to its services, causing inconvenience for e-book users. This incident highlighted how service disruptions or operational shutdowns can affect users' access rights when purchased content is provided through accounts and platforms.
Companies' marketing strategies centered around monthly payments are appealing to consumers as they lower initial spending burdens and offer management services. However, the economic viability of subscription fees cannot be judged solely by the monthly payment amount. It is essential to consider the total costs paid over the entire contract period, the scope of management and repair services, and the ownership of products and availability of content after the contract ends.
Subscriptions reduce the burdens associated with ownership but can increase dependence on contract terms and the service provider's operations. Understanding what consumers pay for convenience, what rights they gain, and what remains after the contract ends is becoming a new standard for consumption in the subscription economy.
* This article has been translated by AI.
When purchasing a product, we first check the price tag. But can we accurately assess the value of a product based solely on that number? When capacities differ, simple price comparisons become challenging, and various fees or additional costs can alter the final payment amount. There is often a significant difference between the price displayed and the actual costs borne by consumers, as well as the value they receive for their money. 'The Hidden Secrets of Pricing' examines the structure of prices we encounter in daily life and highlights the differences in costs and value that consumers may overlook.
“What remains for consumers after a subscription ends?”
Subscription services offer advantages over one-time purchases by lowering initial costs and providing regular maintenance and customer service. However, consumer dissatisfaction can arise during the contract termination process due to penalty fees or repair issues. Additionally, it is essential to consider what happens to ownership of the product after the contract ends and how long users can access purchased digital content.
Consumer Complaints About Appliance Subscriptions Reach 2,624
According to the Korea Consumer Agency, there were 2,624 complaints related to appliance subscriptions from January 2022 to June 2025. Among these, complaints regarding contract-related issues, such as early termination penalties, accounted for 1,446 cases (55.1%), while complaints about quality and customer service issues due to business closures or discontinued parts followed with 908 cases (34.6%).Consumers prioritize information about 'total costs' and 'consumer selling prices' when entering contracts. However, a survey by the Korea Consumer Agency revealed that some major appliance subscription providers did not display total costs and consumer selling prices for all items on their websites. As a result, the agency recommended expanding the disclosure of relevant information and establishing measures for situations where repairs are not possible. Furthermore, it advised informing consumers of important considerations before and after signing contracts.
Penalty Fee Regulations Vary Among Providers, Adding Confusion
The varying penalty fee regulations among providers contribute to consumer confusion. The Consumer Dispute Resolution Standards state that if a contract is terminated due to the consumer's fault and the mandatory usage period exceeds one year, the consumer must compensate an amount equivalent to 10% of the remaining monthly rental fees.However, domestic companies have been found to impose different penalty fees based on the termination timing and subscription items. The Korea Consumer Agency noted that “Samsung Electronics and LG Electronics impose penalties based on the termination timing, while Coway and Cuckoo Homesys impose penalties based on the subscription items, ranging from a minimum of 10% to a maximum of 30%.”
The situation after the contract ends also varies depending on the contract duration and expiration conditions. Some products allow for ownership transfer upon contract completion, while others may require the return of the product or have additional conditions for ownership transfer.
The regular maintenance and customer service provided during the contract period may also change after the contract ends. This is why it is crucial to consider not only the costs during the contract period but also the conditions for ownership transfer and the continuity of management services after expiration when comparing subscription fees.
Digital Content Ownership Issues Arise Amid Subscription Models
In the case of digital products, ownership and usage rights can also be separated, even outside of monthly subscriptions. The ownership issues surrounding games distributed through electronic software distribution (ESD) are a prime example. Just because digital content is purchased does not guarantee permanent access. Particularly when games are designed to rely on the provider's servers, users may find themselves unable to access games they paid for if the server is shut down.For instance, in December 2023, the game 'The Crew' announced plans to end its service, and by March 2024, the servers were actually shut down. The developer also announced that access to the game would be terminated across all platforms, including PC and consoles. Even users who purchased the game in physical format found themselves unable to play due to the server shutdown.
This has sparked the 'Stop Killing Games' movement in Europe, opposing the practice of distributors blocking access to purchased games without alternatives. The movement demands reasonable solutions that allow users to continue playing games even after the service ends.
Additionally, in June 2026, the European Commission stated that it would not propose a legal obligation to ensure continued access to games after service termination at this stage. Instead, it plans to promote the establishment of termination response standards involving industry and consumer groups.
In South Korea, issues regarding access rights to digital content have also emerged. In 2025, Yes24 experienced a ransomware attack that temporarily disrupted access to its services, causing inconvenience for e-book users. This incident highlighted how service disruptions or operational shutdowns can affect users' access rights when purchased content is provided through accounts and platforms.
Companies' marketing strategies centered around monthly payments are appealing to consumers as they lower initial spending burdens and offer management services. However, the economic viability of subscription fees cannot be judged solely by the monthly payment amount. It is essential to consider the total costs paid over the entire contract period, the scope of management and repair services, and the ownership of products and availability of content after the contract ends.
Subscriptions reduce the burdens associated with ownership but can increase dependence on contract terms and the service provider's operations. Understanding what consumers pay for convenience, what rights they gain, and what remains after the contract ends is becoming a new standard for consumption in the subscription economy.
* This article has been translated by AI.
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