Failure to Display Room Rates or Overcharging at Accommodations Will Result in Immediate Business Suspension

Ministry of Health and Welfare Revises Enforcement Rules of the Public Health Control Act
Online Reservations Also Subject to Regulation
Business Closure Ordered for Repeated Violations

From now on, if an accommodation facility fails to display room rates or charges a higher rate than the posted amount and is caught, it will face a suspension of business even for a first violation.

The Ministry of Health and Welfare announced on July 13 that it will implement a partial amendment to the Enforcement Rules of the Public Health Control Act, which includes these measures, starting from July 14.

This revision is a follow-up to the government's "Measures to Eradicate Overcharging," which were jointly announced by relevant ministries in February. Previously, even if accommodation facilities did not display room rates or charged more than the posted price, penalties were limited to a "warning" or an "order for improvement," which was criticized for lacking effectiveness.

The revised rules significantly strengthen administrative measures against the failure to display room rates and charging more than the posted price, both of which undermine consumer trust. If an accommodation provider does not display room rates or charges more than the posted amount, a first violation will result in a five-day suspension of business. For a second violation, the suspension will be extended to 10 days; for a third violation, to 20 days. Upon a fourth violation, the business may be ordered to close entirely.

The amendment also clearly includes online reservation and sales environments within the scope of regulation. Previously, the law required accommodation providers to display room rates at the reception desk. Going forward, accommodations operating online must also display room rates on reservation and sales screens. In addition, if a higher rate is charged than the amount displayed online, the same administrative penalties as those for offline violations will apply. However, if the discrepancy between the posted and actual rates is due to reasons not attributable to the accommodation provider, such as a system error, penalties will not be imposed.

The Ministry of Health and Welfare plans to inform local governments and the accommodation industry about the revised rules, and will continue to monitor and strictly respond to actions that cause consumer harm, such as the failure to display room rates or charging excessive fees.

Kim Hansook, Director of Health Policy at the Ministry of Health and Welfare, stated, "It is necessary to eliminate unfair overcharging in the accommodation industry, which undermines consumer trust," adding, "We will strictly manage and improve the effectiveness of penalties for failure to display room rates and overcharging, so that such practices are not repeated."

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