Ikea Korea falls foul of regulator

South Korea’s antitrust watchdog has told global furniture giant Ikea Korea to revise its terms regarding refunds for cancelled deliveries.

Ikea, which opened its first store in southern Seoul in 2014, is running a delivery service for South Korean customers who are familiar with free packaging and door-to-door delivery.

The service costs between 19,000 won (US$16) and 159,000 won ($137) depending on the distance from its store in Gwangmyeong to the destination.

Ikea Korea has never refunded the delivery fees for any cancelled items even if the item is cancelled before the delivery truck departs, according to Korea’s Fair Trade Commission (FTC).

The FTC said the furniture company has to change its refund guidelines to enable customers to get a refund after omitting packaging and other costs upon the FTC’s recommendation.

Ikea Korea also revised its assembly terms to pay back the money when the customer cancels the service, added the watchdog.

“We’ve received many complaints about Ikea’s refund policies on its delivery and assembly services,” said Min Hye-young, director of the unfair contract examination division at the FTC.

“We took action, as all customers have the right to get a refund for their cancelled purchases.”