Busan Mobilizes Religious Facilities to Tackle "Price Gouging" Ahead of BTS Concert... Government Secures 1,300 Alternative Accommodations

‘Price Gouging Task Force’ Launched With 12 Agencies
1,300 Alternative Accommodations Secured at Universities and Training Centers in Busan, Yangsan, and Nearby Areas

The government is mobilizing an all-out, cross-ministerial response system to eradicate rampant price gouging in key tourist destinations and large event venues. With the BTS concert in Busan imminent, authorities have secured a significant number of alternative accommodations and plan to investigate possible price collusion among businesses through a special joint inspection involving multiple ministries. For businesses found to be violating the law, the government will actively exercise its enforcement powers. This extraordinary measure comes in response to reports that some accommodations, particularly in the Busan area, have increased their prices by up to ten times the usual rate.

Busan Asiad Stadium where BTS held their concert in 2022. Another concert is scheduled for this year as well. Big Hit Music.

On May 28, the government announced that Deputy Vice Minister Kang Giryong of the Ministry of Economy and Finance and policy chief Kang Jungwon of the Ministry of Culture, Sports and Tourism jointly chaired a 'Task Force Meeting on Eradicating Regional Price Gouging.' The meeting was attended by twelve agencies, including the Ministry of Economy and Finance, Ministry of Culture, Sports and Tourism, Ministry of the Interior and Safety, Fair Trade Commission, National Tax Service, National Police Agency, and the Busan Metropolitan Government. These agencies finalized specific enforcement and institutional improvement measures.

1,300 Alternative Accommodations Secured at Universities and Training Centers...Transportation Also Increased

This initiative was prepared in response to growing concerns that some lodging businesses in Busan, ahead of the BTS concert scheduled for June, are charging excessively high prices or unilaterally canceling existing reservations, causing potential harm to tourists. To counter profiteering by accommodation providers, the government has secured a large number of reasonably priced alternative lodgings. Universities, religious organizations, public institution training centers, and youth facilities in Busan and nearby areas such as Yangsan and Changwon have agreed to offer accommodations to tourists, either free of charge or for a fee. So far, about 1,300 alternative accommodation units have been secured, and reservations and guidance will be provided sequentially via the 'Visit Busan' and Korea Tourism Organization's 'Visit Korea' websites.

Additionally, the Busan Metropolitan Government plans to expand options for tourists by launching a 'Fair Accommodation Challenge' to encourage private sector participation in providing accommodations at regular prices, and is considering introducing a homestay program utilizing foreign residents living in the city. To further facilitate travel, plans will soon be announced to increase the frequency of night trains and late-night buses between Busan and Seoul.

Special On-Site Inspections by National Tax Service and Fair Trade Commission...Immediate Business Suspension for Violations

On-site crackdowns and ongoing surveillance will become even stricter. On May 29, and again on June 8–9, a special joint on-site inspection will be conducted by the National Tax Service, Fair Trade Commission, Ministry of the Interior and Safety, and other relevant ministries. The inspection team will focus on evaluating the operations and hygiene standards of accommodation businesses near the concert venue, as well as investigating possible price collusion among businesses. If any violations are detected, immediate corrective orders and other sanctions will be imposed.

In particular, the Busan Metropolitan Government will conduct a special investigation until June 15 focused on major transportation hubs such as Busan Station and Seomyeon, as well as areas near the concert venue. This investigation will target unregistered accommodation operations and violations of price posting and compliance obligations, with offenders subject to criminal charges and strict enforcement. Lists of businesses that have unilaterally canceled reservations, as reported via the 120 area code or the Tourism Complaint Center (1330), will be immediately forwarded to the National Tax Service through local governments, where they will be reviewed for possible tax evasion. For hotels identified as price gougers, the penalty points applied in rating assessments will be significantly increased from the previous maximum of 10 points to 30 points.

Cap on Collusion Reward Abolished by June...“Safe Price System” to Be Legislated Within the Year

The Fair Trade Commission will issue a 'Consumer Damage Prevention Advisory' on May 29 and strengthen its monitoring of prohibited group activities and collusion among lodging businesses to eradicate unfair practices. To encourage whistle-blowing, the current reward cap for reporting collusion (previously 100 million to 3 billion won) will be abolished, and the rules will be revised by June to allow rewards of up to 10% of any imposed fine.

Furthermore, to fundamentally resolve the issue of price gouging, the government is introducing new institutional safeguards. A 'Safe Price System' (advance self-reporting of rates) will require lodging businesses to regularly report and disclose their maximum rates to local governments in advance.

Penalties for unmarked prices, failure to comply with posted rates, or unilateral reservation cancellations will also be significantly strengthened. Previously, a first offense would result only in a warning or corrective order (or no penalty at all), but under the revised Public Health Control Act and Tourism Promotion Act—which the government aims to amend within this year—an initial violation will immediately result in a strong administrative sanction of a five-day business suspension.

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