Full refund has emerged as a core marketing strategy to win consumers in South Korea in an uncertain business environment, raising concerns over unnecessary business cash bleeding.
Domestic e-commerce giant Coupang announced on Tuesday that it will offer full refunds for more than 6,000 travel packages sold on “Coupang Travel” even if customers cancel their bookings the day before arrival.
Cheap vacation packages offered on travel websites often require customers to pay cancellation fees when they cancel trips. Against this practice, Coupang Travel will not only provide full reimbursements that will allow customers to easily adjust their travel schedules, but also vacation packages at competitive prices versus its rivals.
“The biggest complaints by customers regarding travel bookings are cancellations and refunds,” said Thomas Lee, the head of Coupang Travel. The company has prepared the guaranteed refund program to ensure that its customers are able to plan their trips without worry amid uncertainties during the Covid-19 pandemic, he added.
Coupang Travel also offers a variety of vacation rental options such as pool villas, vacation houses for kids, oceanside rentals, and pet-friendly rentals.
The country’s major food company Harim is another Korean company that is offering 100 percent refunds. Harim is giving full refunds for customers who are unsatisfied with "The Misik Rice,“ its instant rice line. Consumers who buy one box of The Misik Rice at Harim’s online shopping mall will be given two types of instant rice - koshihikari and five-grain – for free and if they are not happy with the free products, Harim will fully refund the customers.
Shares of Harim traded up 0.87 percent at 2,910 won ($2.22) during Wednesday morning trade.
By Hong Sung-yong, Jin Young-hwa, and Susan Lee
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]