Hotels that fail to post accommodation rates or charge more than the posted rates will face immediate business suspension upon first violation. The government approved a revision to the Tourism Promotion Act during a cabinet meeting on July 28.
This amendment also includes foreign tourist city lodging and hanok experience businesses as subjects of regulation. Both sectors will receive a five-day business suspension for their first violation of failing to post rates or adhere to posted rates.
The foreign tourist city lodging sector had previously been considered a regulatory blind spot due to the absence of rate posting and compliance requirements, but this amendment introduces those obligations.
Regulations for hanok experience businesses have also been strengthened. Previously, these businesses would only receive a corrective order for failing to post rates or comply with posted rates upon first violation, but now they will face a five-day business suspension. Subsequent violations will result in a 15-day suspension for the second violation, a one-month suspension for the third, and cancellation of business registration for the fourth violation. The revised enforcement decree will be announced and take effect on August 4.
This amendment follows the government's announcement of measures to eliminate overcharging during the expanded national tourism strategy meeting in February. The government is responding to repeated controversies over accommodation fees and unilateral reservation cancellations during peak seasons and large events by strengthening regulations in the lodging, food, and taxi sectors.
Strengthened regulations for the lodging sector have already begun. Since July 14, the revised Public Health Management Act has been in effect, requiring hotels and inns to post rates and comply with them. Previously, first violations would result in a warning or corrective order, but now the second violation incurs a 10-day suspension, and the third a 20-day suspension. A fourth violation will lead to a closure order.
Improvements to regulations for restaurants and taxis are also underway. A proposed amendment to the Food Sanitation Act would impose a five-day business suspension for food service establishments that fail to post rates or charge more than the posted prices. Additionally, a revision to the Taxi Development Act is being pursued to impose a 30-day suspension on taxi drivers found to have charged unreasonable fares upon first violation.
The government is also planning to implement a 'price assurance system' that requires lodging businesses to report seasonal price ceilings to local governments, along with penalties for unjustified cancellations of lodging reservations.
These regulations will not be applied solely based on high accommodation fees. Administrative penalties will only be imposed if it is confirmed that rates were not posted or that the actual amount charged exceeded the posted rates.
* This article has been translated by AI.
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