Court cancels Kakao's fine for failing to fully inform streaming subscribers of cancellation policy

The Seoul High Court on Thursday canceled a 98 million won ($64,200) fine imposed on Kakao by the fair trade watchdog over inadequate user notices on how to terminate music streaming service subscriptions.

In January 2024, the Fair Trade Commission (FTC) handed down the penalty along with corrective orders after determining the company did not properly notify users that they could cancel its music streaming service midsubscription.

In response, Kakao took legal action to dispute the fine.

While the Seoul High Court originally sided with the FTC's decision in January 2025, the Supreme Court sent the case back for review in November.

The top court upheld the legality of the regulator's corrective orders but found issues with the grounds to levy the penalty.

In its latest ruling, the Seoul High Court said it would cancel the fine as the electronic commerce law stipulates that fines can be imposed instead of business suspensions only when suspensions lead to serious inconveniences to consumers.

Yonhap