The South Korean government is taking action to prevent price gouging and reservation cancellations ahead of the BTS concert scheduled for June in Busan. The National Tax Service and the Fair Trade Commission will conduct special on-site inspections, and businesses found in violation may face severe penalties, including suspension of operations.
On May 28, the Ministry of Economy and Finance and the Ministry of Culture, Sports and Tourism held a task force meeting co-chaired by Vice Minister Kang Gi-ryong and Director Kang Jeong-won of the Tourism Policy Bureau.
Authorities are concerned that some hotels in Busan may unilaterally cancel existing reservations or excessively raise accommodation prices as the concert date approaches. There are particular worries about high rates and non-compliance with posted prices at hotels near the concert venue.
To alleviate the burden on tourists, the government is securing alternative accommodations, including university dormitories, religious facilities, public training centers, and youth training facilities. So far, around 1,300 alternative lodging options have been secured in Busan and nearby areas like Yangsan and Changwon, with reservations being processed or announced sequentially. Information is available through 'Visit Busan' and the Korea Tourism Organization's 'Visit Korea.'
Busan City is encouraging participation from regular-priced hotels through the 'Fair Accommodation Challenge' and is considering options for foreign homestays. The government plans to quickly review and announce measures to increase late-night bus and train services between Busan and Seoul.
A multi-agency special inspection will also take place. On May 29 and June 8-9, joint inspections involving the National Tax Service, Fair Trade Commission, Ministry of Health and Welfare, Ministry of the Interior and Safety, and Busan City will focus on price collusion, compliance with posted rates, and hygiene conditions at hotels near the concert venue. Violating establishments will face immediate corrective orders and operational suspensions.
Additionally, Busan City will conduct a special investigation until June 15. If unreported lodging operations, non-posted or misleading rates, or violations of hygiene standards are found, criminal charges and administrative penalties will be pursued.
The government is also strengthening its consumer complaint reporting system. Reports of reservation cancellations and other issues received through the tourism inconvenience reporting center '1330' or local number '120' will be immediately communicated to local governments for on-site inspections, and relevant information will be shared with the National Tax Service to investigate potential tax evasion.
In the long term, the government aims to implement a 'Price Assurance System' to prevent price gouging. Under this system, lodging providers would be required to report and publicly disclose their seasonal rates in advance, with penalties for exceeding reported prices. Unilateral reservation cancellations will also be subject to sanctions, with plans to finalize related legal amendments within the year.
* This article has been translated by AI.
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