150 Billion Won Lost to Gym Scam After Deciding to Get Fit, Tears Only...

Over 2,700 Cases from January to July This Year... Likely to Surpass Last Year
Major Franchises Also Suddenly Closing
Intentionality Hard to Determine and Damage Scale Unclear

Incidents of so-called 'meoktwi' (a contraction of "eat and run") at Pilates and yoga gyms have increased by 120% over the past four years. The estimated damage amount is close to 155 billion KRW. Typically, these gyms collect membership fees for several months to a year in advance and then suddenly close down after recruiting members.

Lee Sang-heon, a member of the National Assembly's Culture, Sports and Tourism Committee from the Democratic Party of Korea (Ulsan Buk-gu), announced on the 14th that he had introduced a partial amendment bill to the "Act on the Installation and Use of Sports Facilities." The bill aims to prevent meoktwi incidents occurring in Pilates and similar facilities.

According to data submitted to Lee by the Korea Consumer Agency, the number of damage relief cases for users of gyms, yoga, and Pilates surged from 1,634 cases in 2018 to 3,586 cases in 2022, an increase of 120% over four years. From January to July this year alone, 2,733 damage relief cases were recorded, expected to surpass last year's level.

Gym

As a result, the amount of damage has also surged. In 2018, the total damage amount was recorded at 15.5 billion KRW, but including unreported amounts, it is estimated to be over 155 billion KRW, roughly ten times higher.

The meoktwi prevention law proposed by Lee defines Pilates and yoga businesses as "registered sports facility businesses" and requires sports facility operators who receive advance payments for more than three months to subscribe to guarantee insurance to compensate users in case of business suspension.

Under current law, gyms are classified as registered sports facilities that must have specific standards and report to local governments, but yoga and Pilates businesses are considered free sports facilities that do not require separate permits.

Difficulty in Determining Intent and Few Victim Reports... 'Gym Meoktwi' on the Rise

Notice posted on a closed gym.

Yoga and Pilates memberships are often purchased for several months to a year. Promotions offering discounts for long-term memberships are common. 'Gym meoktwi' occurs when newly opened gyms recruit long-term members, collect registration fees, and then suddenly close and disappear.

The 'gym meoktwi' issue is not new. According to Consumer Agency data, hundreds of damage cases have been reported since 2016. It also frequently occurs in large companies operating dozens of branches.

For example, in June, a large franchise gym operating 28 branches in the metropolitan area suddenly closed, and last month, a Pilates business in Sinchon, Seoul, abruptly shut down after selling memberships worth tens of millions of KRW.

Some point to the difficulty in distinguishing intentional closures and the rarity of victim reports as causes for the surge in meoktwi incidents.

Most suddenly closed fitness centers post notices stating they will suspend operations due to debt-related seizures. Owners often maintain at least formal contact with victims, promising to repay membership fees when circumstances improve.

Victims also find it difficult to file reports or lawsuits. Although total damages amount to hundreds of millions or billions of KRW, individual members typically lose between 100,000 to 200,000 KRW, rarely exceeding 1 million KRW. Since legal fees are higher, most give up. According to Consumer Agency data, only about 10% of victims apply for damage relief.

This content was produced with the assistance of AI translation services.