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Controversy has continued recently as reports emerge of businesses receiving group reservations for dozens, or even as many as 100 people, only to be hit with same-day no-shows.

(Omitted)

Regarding this issue, Attorney Chon Hyeong Hwan, a criminal defense attorney at YK Law Firm, said, “If the affected business can prove intent, criminal punishment is possible.” He explained, “The elements of obstruction of business include force, fraudulent means, or the spreading of false information. In the case of the sports association no-show incident, obstruction of business by fraudulent means may be established.”

He added, “Even if the customers failed to show up due to unavoidable circumstances, criminal punishment would not be possible, but a civil claim for damages may still be filed.”

Attorney Chon explained, “In reality, when small business owners suffer no-shows, they must directly prove intent, but doing so is extremely difficult. Even if they manage to prove intent, many give up because the amount of damages is not very large, while litigation costs can be substantial.”

Therefore, it is important to notify customers in advance, from the time the reservation is made, that damages may be claimed in the event of a no-show, and to keep evidence of such notice. Evidence preserved in this way can be helpful later when seeking compensation.

Using a reservation deposit system is also an option. Although business owners may worry that customers will be discouraged from making reservations, it can be an important measure to minimize damage to the business.

Attorney Chon explained, “A deposit clause itself is essentially a penalty for breach of contract, so there is no legal issue with it. From the consumer’s perspective as well, placing a deposit when making a reservation can create a psychological incentive to show up.”

He added, “These days, deposit systems have become more common through restaurant reservation apps such as Catch Table, so business owners should not feel too burdened about introducing deposits.”

Source: YTN, Reporter Lee Yoo-na, “‘A No-Show for 100 People Crosses the Line’… Can Group No-Shows Be Punished as Obstruction of Business?” May 7, 2024.
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