SEOUL, May 08 (AJP) - “I thought that was just the normal price at first,” said Teo, a 28-year-old Singaporean who visited Seoul last month after paying around 50,000 won ($36) for a roughly 20-minute taxi ride from Seoul station to his hotel.
South Korea will suspend taxi drivers for 30 days from their very first violation if they are caught overcharging foreign passengers, as authorities move to curb mounting complaints from overseas visitors. However, experts say tougher penalties alone may not fully resolve the issue, pointing to structural problems within South Korea’s taxi industry and limited transportation alternatives for foreign tourists unfamiliar with local systems.
“Overcharging foreign tourists is clearly a problem in itself, whether it amounts to discrimination or deception targeting people unfamiliar with the system,” said Jeong Ran-soo, professor at department of Tourism at Hanyang University.
The Ministry of Land, Infrastructure and Transport (MOLIT) said Friday it had proposed revisions to enforcement rules under the Taxi Transportation Business Development Act, tightening penalties for drivers who unfairly charge foreign passengers inflated fares.
Jeong said foreign tourists are especially vulnerable because of what he described as “information asymmetry,” where visitors are unfamiliar with local transportation systems and pricing structures. While taxi scams exist in many countries, he noted that overseas tourists often have broader access to alternative transportation platforms such as Uber, Grab or global travel-booking services.
“In Korea, foreign visitors have fewer convenient alternatives beyond taxis, buses or subways,” he said, adding that authorities should consider expanding specialized tourism transportation services, including regulated “tourist taxi” programs with clearer pricing systems tailored for overseas visitors.
Under the current system, drivers caught overcharging passengers for the first time receive a warning, with a 30-day license suspension imposed after a second violation. The revised rules would eliminate the warning stage and allow immediate suspension for a first offense.
Under the current system, drivers caught overcharging passengers for the first time receive a warning, with a 30-day license suspension imposed after a second violation. The revised rules would eliminate the warning stage and allow immediate suspension for a first offense.
The move follows a broader government campaign unveiled at a tourism strategy meeting chaired by President Lee Jae Myung in February, where officials announced measures to curb tourist overcharging and improve service standards for foreign visitors. The ministry said it plans to finalize the revised rules after a public consultation period ending June 17.
Urgency has grown as complaints over taxi overcharging continue to surface amid sharp increase in foreign arrivals. South Korea recorded an all-time high of 2.06 million foreign arrivals in March alone, while first-quarter inbound tourism rose 23% from a year earlier, driven by the global popularity of K-pop and other Korean cultural exports.
Against that backdrop, Seoul Metropolitan Government introduced a QR-code complaint system for foreign passengers in June last year, making it easier for tourists to report taxi-related problems.
According to data released by the city government in January, authorities received 487 complaints over roughly six months, with unfair fare charges accounting for the largest share.
Administrative penalties had already been imposed in cases where violations were confirmed. Seoul also introduced English-language taxi receipts late last year, listing late-night surcharges and toll fees separately so foreign passengers could easily verify charges.
Despite those efforts, complaints have remained concentrated around major tourist hubs and transportation gateways.
Local reports in January highlighted several alleged overcharging cases involving foreign tourists near Incheon International Airport and Inspire Arena— a large entertainment venue that hosts K-pop concerts and international events. In one case, a Chinese tourist said she paid 150,000 won (about $110), for a taxi ride to Seoul after attending a concert.
Another passenger was asked to pay 50,000 won for a short trip to an airport rail station that would normally cost around 10,000 won during snowy weather conditions.
Incheon Metropolitan City government said 360 taxi-related complaints were filed last year in areas surrounding the airport and concert venue. During the same period, police detected 466 cases involving illegal transportation services near the airport.
The government’s aggressive response also reflects broader concerns about South Korea’s tourism competitiveness. The country has seen a sharp rise in foreign visitors fueled by the global popularity of K-pop, K-dramas and other Korean cultural exports, but officials worry that repeated incidents involving tourists could damage the country’s international image.
Data from the Korea Tourism Organization showed tourism-related consumer complaints surged 71.1 percent from a year earlier to 1,543 cases last year, with taxis, shopping and accommodations among the most common categories.
Tourism industry officials warn that repeated overcharging incidents in areas heavily frequented by foreign tourists could leave visitors with a negative overall impression of traveling in South Korea. Complaints involving Korean taxi services and advice on avoiding scams are also widely shared across online travel communities and social media platforms.
The ministry said unfair taxi charges could undermine trust in South Korea’s tourism industry, adding that authorities plan to strengthen enforcement and penalties to prevent repeat violations.
Copyright ⓒ Aju Press All rights reserved.