Consumer complaints filed with the Korea Consumer Agency (KCA) rose by 47% over a five-year period, yet the rate of successful settlements between consumers and businesses has remained stagnant in the 50% range, Gwangyeok Haengjeong Shinmun reported. Data analyzed by Rep. Min Byung-duk of the Democratic Party of Korea shows that while the volume of disputes is climbing rapidly, the effectiveness of the resolution process has not kept pace.
Case Filings Outpace Settlement Growth
The number of damage relief requests submitted to the KCA grew from 42,844 cases in 2021 to 62,996 cases by 2025, an increase of 20,152 filings. While the total number of settled cases also rose during this window—climbing from 21,586 in 2021 to 34,971 in 2025—the percentage of cases reaching an agreement only saw a marginal increase. The settlement rate moved from 50.4% in 2021 to 55.5% in 2025.
Recent data from August 2026 indicates the trend continues, with 42,048 cases filed and a settlement rate of 54.9%. However, officials noted that 3,979 cases remain under processing, which may alter the final percentage.
Sector Disparities in Resolution Rates
Success rates vary sharply depending on the industry. In 2025, laundry services saw the highest settlement rate at 72.5%, followed by clothing, textiles, and personal items at 72.2%. Other high-performing sectors included food and luxury goods (63.5%), kitchenware and equipment (63.0%), and miscellaneous machinery (62.5%).
Conversely, professional services and utilities show significant friction in reaching agreements. The lowest settlement rates for 2025 were recorded in:
- Legal and administrative services: 37.0%
- Heating, lighting, and water: 38.7%
- Insurance: 39.4%
- Health and hygiene services: 40.2%
- Other services: 42.8%
Insurance has been a consistent outlier, appearing in the bottom five for settlement rates nearly every year since 2021.
Information Gaps Drive Low Agreement Rates
Rep. Min Byung-duk stated that the low settlement rates in insurance, legal, and health sectors stem from a significant gap in information and bargaining power between the consumer and the business provider. He argued that the current system is not evolving fast enough to match the speed at which consumer damages are increasing.
Min called on the Korea Consumer Agency to move beyond simply processing cases. He urged the agency to analyze the specific causes of non-agreement and recurring damage patterns to create customized relief measures for different product categories.
Comparison of Settlement Trends (2021 vs. 2025)
| Metric | 2021 | 2025 |
|---|---|---|
| Total Cases Filed | 42,844 | 62,996 |
| Total Settlements | 21,586 | 34,971 |
| Overall Settlement Rate | 50.4% | 55.5% |
| Top Sector (Rate) | Finance (74.8%) | Laundry (72.5%) |
| Bottom Sector (Rate) | Insurance (22.9%) | Legal/Admin (37.0%) |
KCA Dispute Resolution Queries
Why is the insurance sector consistently difficult to resolve?
According to Rep. Min Byung-duk, this is due to the vast disparity in negotiation power and specialized information held by insurance companies compared to individual consumers.
What happened to the financial sector’s settlement rate?
The financial sector previously held high settlement rates, such as 74.8% in 2021, but dropped to 69.5% in 2022 and fell out of the top five highest-settlement categories starting in 2023.
Will the 2026 settlement figures change?
The August 2026 rate of 54.9% is subject to change because 3,979 cases are still being processed by the agency.
Legal and administrative services currently hold the lowest settlement rate at 37.0%.