The Korea Consumer Agency (KCA) investigated four major home appliance subscription service providers — Samsung Electronics (005930.KS), LG Electronics (066570.KS), Coway (021240.KS) and Cuckoo Homesys (284740.KS) — and found that most operators emphasize only monthly fees while failing to adequately provide key information such as total costs and consumer retail prices, indicating a need for improvement.
According to the KCA on Monday, a total of 2,624 damage relief applications related to home appliance subscription services were filed with the agency over the past three and a half years (2022 to June 2025). The annual figures were 636 in 2022, 643 in 2023, 886 in 2024 and 459 through June of last year, showing an upward trend each year.
By product category, water purifiers — a traditional rental item — accounted for the largest share at 58.2% (1,528 cases). Complaints involving large appliance subscriptions such as refrigerators, washing machines and air conditioners also rose steadily, with 16 cases in 2022, 19 in 2023, 39 in 2024 and 20 through June of last year.
Contract-related complaints, including excessive early termination penalties, were the most common type of grievance at 55.1% (1,446 cases). Quality and after-sales service issues — such as inability to repair products due to business discontinuation or discontinued parts — followed at 34.6% (908 cases).
The KCA pointed out that providers' disclosure of total costs and retail prices required for subscription contracts was inadequate. Three of the four companies surveyed displayed total costs and consumer retail prices for all subscription items on their official online websites. However, one provider, LG Electronics, offered such information only for items specifically designated in government notice requirements. In response to the KCA's recommendation, LG Electronics replied that it would improve its official website to display "total subscription costs" and "consumer retail prices" for all subscription items.
A KCA survey of 500 consumers with large appliance subscription experience found that respondents placed high importance on "total cost" (4.27 out of 5 points) and "consumer retail price" (4.16 points) information when signing contracts, underscoring the need for providers to supply sufficient information.
The KCA also flagged that penalty provisions vary by provider. Under the Consumer Dispute Resolution Standards, when a mandatory usage period exceeds one year, the early termination penalty is set at "10% of the remaining monthly rental fees." The investigation found that Samsung Electronics and LG Electronics apply differentiated penalties based on the timing of cancellation, while Coway and Cuckoo Homesys vary penalties by product category, ranging from a minimum of 10% to a maximum of 30%.
According to the KCA survey, 31.4% (157 respondents) said they did not know the exact level of penalties, indicating a need for clearer contract information that consumers can easily understand.
Additionally, the KCA examined after-sales service practices and found that Samsung Electronics provided detailed measures for all situations where repair parts are unavailable. LG Electronics, Coway and Cuckoo Homesys, however, offered little beyond a notice that "after-sales service is unavailable," with insufficient specifics on alternative measures.
Since most appliance subscription services involve long-term contracts, consumers can suffer when after-sales service becomes difficult due to a manufacturer's business discontinuation or parts being discontinued, making improvements necessary.
The KCA plans to share the investigation results with relevant government ministries and propose institutional improvements, including revisions to the "Notice on Important Labeling and Advertising Matters." The agency requested that providers display total costs and consumer retail prices for all items on their online websites and prepare contingency measures for situations where repairs are not possible. All four companies said they would actively comply with the recommendations.
"Through the regular consultative body for home appliance and water purifier operators, we plan to push for improvements such as displaying total costs and consumer retail prices even for operators beyond those covered in this investigation," a KCA official said.