"Three-Star Rooms at 980,000 Won a Night, Five-Star at 2 Million"... Busan Fireworks Festival Seats Cost 100,000 Won, but Hotel Views Bring Another Price-Gouging Row

Some accommodation packages nearly 10 times their usual rates
Government pushes for system requiring lodging businesses to report and disclose rate caps

As the Busan Fireworks Festival, one of the city's signature tourism events, approaches, accommodation prices in the Gwangalli and Haeundae areas have surged, reigniting controversy over price gouging. Similar problems arise every year, but regulating price increases themselves is difficult, prompting calls for effective measures.

The fireworks festival held against the backdrop of the sea at Gwangalli Beach in Busan in 2023. Yonhap News Agency

Yonhap News Agency reported on October 11 that nearby accommodations had sharply raised their rates ahead of the 21st Busan Fireworks Festival, which will be held on November 7.

A three-star hotel in Gwangalli was offering rooms with views of Gwangandaegyo Bridge for 980,000 won for two people. The rate for four people was 1.3 million won, more than five times the usual weekend price. At another three-star hotel, rooms without a view of the fireworks were being offered for 500,000 to 600,000 won. A five-star hotel in Haeundae set the starting rate for rooms with views of the fireworks festival at 2 million won. Some accommodation packages were reportedly priced at nearly 10 times their usual rates.

The accommodation industry says the price increases reflect concentrated demand during the festival. It maintains that rates should be set according to market principles, given the higher costs of bringing in additional staff and offering room and food-and-beverage packages. Tourists, however, say the increases are excessive and that it is difficult to compare room views and prices.

The controversy also arose last year. Ahead of the 2025 festival, reports said rates at accommodations near Gwangalli had exceeded 1 million won, with some packages priced in the 4 million won range. In one case, an accommodation provider realized belatedly that the festival date had changed and demanded an additional 1.35 million won from an existing guest. After the guest refused, the provider reportedly canceled the reservation and issued a refund.

Under the current system, authorities can take issue with matters such as failing to display a price list or charging a different amount from the listed rate. However, it is difficult to impose penalties solely because prices were raised during a period of high demand. The Busan Metropolitan Government and district offices are responding through price-list inspections and on-site monitoring.

After accommodation prices became controversial during BTS's concert in Busan last June, the government began pursuing the introduction of a "price-gouging prevention system." The proposal would require accommodation providers to report and disclose seasonal price caps to local governments to improve price transparency. Authorities are also considering measures to penalize providers who cancel reservations without legitimate reason and then resell the rooms at higher rates. Related legislation is pending in the National Assembly.

This year's Busan Fireworks Festival will offer official paid seats for 100,000 won for R seats and 70,000 won for S seats. For the first time, the Busan Metropolitan Government will offer Busan residents a 10% discount and plans to reinvest ticket sales revenue in the fireworks display and facilities for audience convenience and safety. There are calls to improve the festival's accessibility not only by making tickets more affordable, but also by ensuring transparency in accommodation prices and addressing unfair reservation practices.

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