BTS Busan concert leads to new Korean tourism laws
New rules impose instant suspension for hotels canceling or overcharging guests
Dubai: The South Korean government is taking strong action to stop hotels, guesthouses, and restaurants from overcharging visitors during major events like concerts. Any business that cancels confirmed bookings without a good reason or charges more than the listed price can now face immediate suspension.
Deputy Prime Minister Koo Yun-cheol announced the new measures at a government meeting led by President Lee Jae-myung. The rules come after reports of accommodation prices near the recent BTS concert in Busan spiking up to 7.5 times the normal rate, with some bookings canceled so the rooms could be sold for more.
New Rules for Businesses
Hotels or guesthouses that cancel confirmed reservations to raise prices will face a 5-day suspension. Repeat offenses lead to longer suspensions, up to permanent closure after four violations.
Restaurants and accommodations that fail to display prices or charge more than listed will also face immediate suspension, with penalties increasing for repeated violations.
The rules apply to all types of accommodations, including Airbnb-style guesthouses, rural homestays, and traditional hanok lodging.
Fair Pricing System
The government is introducing a “Fair Pricing Assurance System” for hotels. Businesses will report maximum seasonal or weekend rates once a year to make pricing transparent. The government will monitor trends and take action if it finds signs of price-fixing.
Extra Penalties
Businesses caught overcharging may face other consequences, such as lower scores for government support programs, removal from regional gift card programs, or penalties during festivals.
These changes aim to protect visitors and make travel fair during high-demand events, ensuring tourists can enjoy Korea without being exploited.
Article contributed by Saarangi Aji
