On June 4, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a meeting of the Special Task Force on Living Costs at the Government Seoul Building, where the implementation status and future plans for measures to eradicate price gouging were discussed.
In response to a surge in hotel prices and unilateral booking cancellations during recent BTS concerts in Busan, the government has decided to strengthen consumer protection measures. During the concert week, some hotels in Busan reportedly raised their rates by an average of 2.4 times, with some prices increasing as much as 7.5 times compared to the previous and following weekends. As of May 29, a total of 311 complaints regarding tourism inconveniences were reported, with 256 of those related to booking cancellations.
The government will revise consumer dispute resolution standards to address cancellations made for the purpose of price increases or resale. The proposed amendments will include provisions for refunding deposits and compensating consumers with 200% of the canceled accommodation fees. A related bill is expected to be introduced later this month.
Additionally, the government plans to implement a "price assurance system" that requires hotels to report and publicly disclose peak season rates. Hotels will be mandated to report their seasonal rates to local governments and make this information available on booking platforms and their websites. Measures will also be considered to penalize hotels that charge above reported rates or fail to report their rates in advance.
Enforcement against price gouging will also be intensified. A joint government inspection team, including the Ministry of Interior and Safety, the Ministry of Culture, Sports and Tourism, the Ministry of Health and Welfare, the National Tax Service, the National Police Agency, the Fair Trade Commission, and local governments, will focus on violations related to the mandatory posting of accommodation rates and unreported lodging operations. Strict measures will be taken against confirmed cases of collusion or tax evasion.
The government will also enhance penalties for businesses engaging in price gouging. The point deduction for hotels during grading evaluations will increase from a maximum of 10 points to 30 points for unfair pricing practices. Penalties will also be imposed during the selection process for various government support programs and events.
As the summer vacation season and various festivals approach, the government plans to continue special inspections in collaboration with relevant departments and strengthen its response system to ensure immediate on-site inspections and administrative actions upon receiving complaints.
* This article has been translated by AI.
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