Lodging Operator Accused of Kicking Out Guests With Reservations, Reselling Rooms for 7 Times More Ahead of BTS Concert... Referred to Prosecutors on Fraud Charges

False overbooking claims prompted customers with existing reservations to cancel

"Rooms resold for 500,000 to 600,000 won per night"

Busan police refer lodging business operator to prosecutors on fraud charges

A lodging business was caught by police after lying to customers with existing reservations and taking away their rooms ahead of a BTS concert in Busan. The business canceled rooms booked at regular rates and then resold them for as much as seven times more.

On Nov. 4, the Anti-Corruption and Economic Crime Investigation Unit of the Busan Metropolitan Police Agency, headed by Commissioner Kim Seong-hee, said it had referred a lodging business operator identified as A, who is in their 50s, to prosecutors on fraud charges.

A is suspected of calling a customer in mid-May who had booked a room for the BTS concert in Busan at the regular rate in mid-January and falsely telling them, "We have dozens of overbookings, so please cancel your reservation." Investigators found that after the customer canceled, A resold the room at a higher price.

According to police, actual overbookings occurred immediately after the concert was announced, but were resolved in just over a month as the lodging business and booking platform encouraged customers to cancel. Police believe A knew there were still rooms available when asking customers to cancel, but falsely claimed there had been overbookings in order to sell the rooms at higher prices.

Police confirmed that the rooms were sold for 500,000 to 600,000 won per night, six to seven times the regular rate, around the time of the cancellations. Police substantiated the fraud allegations through searches and interviews with people involved.

Police said they will continue monitoring lodging businesses that repeatedly receive reports of complaints related to accommodation prices ahead of the Busan Fireworks Festival.

[Yonhap News]

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