Foreign group tourists visiting South Korea will see immediate bans on travel agencies that force shopping or allow unauthorized departures. The new regulations, which directly incorporate penalties into the Tourism Promotion Act, aim to eliminate loopholes that unscrupulous agencies have exploited to avoid sanctions through legal battles.
The Ministry of Culture, Sports and Tourism announced on May 8 that the National Assembly passed an amendment to the Tourism Promotion Act on May 7, establishing clear guidelines for prohibited actions and administrative penalties for travel agencies. The amendment will take effect six months after its promulgation.
◆ Overcoming Limitations of Administrative Guidelines…Ensuring Effective Legal Sanctions
A key aspect of this amendment is the introduction of strong legal measures to expel travel agencies engaged in ultra-low-cost dumping tourism.
Previously, the ministry relied on administrative guidelines and renewal reviews to designate problematic agencies. However, many of these agencies exploited the lack of clear legal grounds to file injunctions or administrative lawsuits, allowing them to continue operating covertly.
In response, the government amended the Tourism Promotion Act itself, elevating the legal basis for sanctions. By embedding punitive provisions into the primary law, the government has effectively closed loopholes that allowed agencies to evade penalties.
◆ New Prohibited Actions…Ending the Practice of Shifting Guide Salaries
The amendment specifies three prohibited actions for travel agencies. According to the newly established Article 12-3, Section 3, travel agencies are strictly forbidden from: 1) significantly lowering the cost of attracting tourists while collecting commissions from specific facilities, disrupting the order of the travel industry; 2) forcing tourists to make purchases or engaging in abusive behavior; and 3) using the salaries of hired tourism workers to cover shopping commissions.
Violations may result in the Minister of Culture, Sports and Tourism imposing a suspension of operations for up to six months or canceling the agency's designation. Notably, a new mandatory cancellation clause has been introduced, requiring the cancellation of designation if an agency is caught continuing operations during a suspension period.
◆ Accountability for Allowing Unauthorized Departures…Implementing a Comprehensive Management Network
Travel agencies will also face strict accountability for incidents where tourists exploit group visa loopholes to become illegal residents after unauthorized departures.
If tourists recruited by a travel agency leave without authorization, the agency will be assessed based on the number of unauthorized departures, departure rates, and incident occurrences, leading to potential suspensions or cancellations of designation.
To enhance enforcement effectiveness, the amendment legalizes a government-wide collaboration framework, allowing the Minister of Culture, Sports and Tourism to work with heads of relevant central administrative agencies, such as the Ministry of Justice. The authority to designate and renew travel agencies can also be delegated to specialized institutions like the Korea Tourism Organization, significantly enhancing the review process's expertise.
Minister of Culture, Sports and Tourism, Choi Hwi-young, stated, "This amendment to the Tourism Promotion Act will solidify order in the inbound group tourism market and foster a high-quality group tourism sector." The ministry plans to establish detailed administrative penalty criteria in subordinate regulations before the law takes effect.
* This article has been translated by AI.
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