Seoul: The ceiling for no-show penalties at reservation-based fine dining restaurants will be raised to 40 percent of the preordered menu, the antitrust regulator said Thursday. This change comes as part of an effort to address the challenges faced by upscale dining establishments in managing last-minute cancellations and no-shows.

According to Yonhap News Agency, advance reservation-based upscale restaurants, such as omakase establishments, will now be permitted to charge a no-show fee of up to 40 percent of the price of menu items for which consumers made reservations. This marks a significant increase from the previous maximum cancellation fee of 10 percent for no-shows.

For general walk-in restaurants, the penalty may be set at up to 20 percent of the total amount charged. The Fair Trade Commission (FTC) explained that the revision in penalty guidelines aligns with the typical cost ratios in the food service industry, which are around 30 percent.

The FTC also adjusted penalty guidelines for the wedding industry. Wedding venue operators are now allowed to charge up to a 70 percent penalty of the total cost for cancellations on the day of the event, 50 percent for those made one to nine days prior, and 40 percent for those made 10 to 29 days before the wedding.

Conversely, if venue operators cancel reservations, they are required to reimburse 70 percent of the total cost to users if the cancellation occurs 29 days or less before the wedding, and 35 percent if canceled earlier than that.