Travel agency popular for phone-free educational tours leaves customers in lurch after police raid

Last month, a mother sent her middle school-aged child on a 10-day, eight-night trip to Europe through Andersen, a travel agency specializing in so-called educational tours. The itinerary included Britain and France, and the mother said she was drawn to the company's policy of having children travel without cellphones so they could be immersed fully in the lived experience.

Three days after her child left Korea, however, the travel agency abruptly announced that it was suspending operations.

The reason came as an even bigger shock. Andersen said it had been raided by the Seoul Metropolitan Police Agency's security investigation division and claimed that "ruthless suppression by prosecutors and police has made it impossible for us to continue operating."

With the children carrying no phones and the possibility that their return tickets could be canceled, the mother immediately contacted the local Korean consulate and tracked down her child's whereabouts. She eventually managed to get the child safely home after sending additional money for the trip.

The Seoul Metropolitan Police Agency raided Andersen on Aug. 4, according to findings by the JoongAng Ilbo. Police are investigating suspected links between the travel agency and current and former officials of the People's Democracy Party, a far-left party with an anti-imperialism stance known for engaging in pro-North Korea activity, who were referred to prosecutors in June on suspicion of violating the National Security Act. The company announced that it would suspend operations following the raid.

The sudden shutdown has left a growing number of customers facing potential losses.

The travel agency had offered discounts of nearly 50 percent to customers who paid cash upfront for trips scheduled to depart a year later. As a result, many customers had transferred large sums to the company long before their scheduled departure dates. If the company does not resume operations, clients may be unable to recover the full amount of their advance payments.

Based on figures compiled by the affected customers themselves, around 9,000 people transferred money to Andersen, with potential losses exceeding 29.5 billion won ($21 million). An online group chat for affected customers had 1,560 members as of Tuesday.

Customers said they had little reason to be suspicious because the travel agency had received many positive reviews.

A customer surnamed Yang, who stands to lose more than 3.5 million won, said the agency had been recommended by an acquaintance and that people who had previously traveled with the company had been satisfied with its services.

"We had booked a place to stay near the airport and were waiting there the day before departure when the trip was suddenly canceled along with news of the police raid, so we were stunned," Yang said. "The money is one thing, but it was also devastating for the children, who had been looking forward to the trip for more than a year."

Some customers have yet to receive refunds even though they requested them before the company suspended operations.

One customer surnamed Lee, who is still owed a total of 9 million won, made an advance payment in December last year and requested a refund in June but has yet to receive the money.

“I canceled while I could still get a full refund, but they asked me to wait, saying they would refund the money in August,” Lee said. "I trusted them, and then this happened."

Andersen had operated its travel business for more than a decade and had built up a substantial base of repeat customers, some of whom had traveled with the company several times.

Those customers said they were even more shocked by suspicions that people connected to the company may have been involved with an organization accused of pro-North Korean activities.

A customer surnamed Son, who had taken five trips through Andersen and has 17 million won tied up in two future bookings, said the situation had left the customer bewildered.

"I had become almost like family with the people at the travel agency, so I was shocked when this happened," Son said. "There was never any political discussion during the trips, but I do remember finding it strange when I shared photos of company staff taken during a trip in a group chat and was quickly told to delete them."

Since Aug. 15, Andersen has been sending emails to affected customers saying it intends to “resume normal operations in two years” and offering to transfer their advance payments to other travel packages.

But customers who have lost trust in the agency are demanding refunds, and some are preparing to file a collective complaint. Fraud complaints against the company have been filed with police stations across the country, and the cases are being transferred to the Seoul Metropolitan Police Agency's security investigation division.

"After referring some suspects to prosecutors in June on charges of violating the National Security Act, we have continued investigating the remaining matters," an official from the Seoul Metropolitan Police Agency said. "We have been taking the necessary steps since the raid, and because the Seoul police agency is handling the investigation directly, we are proceeding more swiftly and thoroughly."

BY KWAK JOO-YOUNG, CHOI HYE-RI [[email protected]]