Hanok Experience and Urban Homestays Face Business Suspension for "Price Gouging"

From now on, if Hanok experience accommodations or foreign tourist urban homestays fail to display their room rates, their business operations will be suspended even for a first offense.

Bukchon Hanok Village, Jongno-gu, Seoul

On July 28, the government reviewed and approved a revision to the Enforcement Decree of the Tourism Promotion Act during a cabinet meeting. This revision follows up on the "Measures to Eradicate Price Gouging" announced on February 25, and is scheduled to take effect immediately upon promulgation on August 4.

Until now, for Hanok experience accommodations, failure to post room rates or charging higher prices than the posted rates would only result in a correction order for the first violation. Similarly, there were no requirements for price display or compliance in the foreign tourist urban homestay sector, leaving a loophole in price transparency. In response, the government has introduced new regulations mandating the display and compliance of room rates for foreign tourist urban homestays through the revised decree.

In addition, the government has strengthened sanctions by imposing an immediate five-day business suspension for a first offense involving actions that undermine consumer trust, such as failing to display accommodation rates or charging more than the posted rates for Hanok experience accommodations and foreign tourist urban homestays. This strengthening of sanctions started applying to general and residential lodging businesses as of July 14, through the amended Enforcement Rule of the Public Health Control Act.

The government stated, "Going forward, the scope of these regulations will be expanded to include the taxi industry and food service businesses through revisions to the Enforcement Rule of the Taxi Development Act and the Enforcement Rule of the Food Sanitation Act."

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