[Alpha Biz= Kim Jisun] Seoul, March 25 — The South Korean government announced strict enforcement measures to curb price gouging by food and accommodation providers following a sharp rise in lodging prices linked to concerts by global K-pop group BTS.
The Ministry of Economy and Finance unveiled the measures at the National Tourism Strategy Meeting on Tuesday, stating that businesses found engaging in excessive pricing will face immediate business suspension.
Under the new policy, practices such as failing to disclose prices, excessively raising rates during periods of high demand, or unilaterally canceling existing reservations to impose higher prices will be classified as unfair pricing, commonly referred to as “price gouging.”
The move follows a recent investigation by the Fair Trade Commission, which found that during the June BTS concert weekend in Busan, nightly room rates at some accommodations surged to as much as 7.5 times their normal levels.
Key Measures
To prevent excessive lodging fees, the government will introduce a “Price Assurance Program,” a voluntary pre-reporting system under which accommodation providers must submit annual maximum price caps for off-peak, peak, and special event periods to local governments. Approved rates must be clearly displayed on booking platforms, official websites, and at reception desks.
Penalties for violations will escalate with repeat offenses:
First violation: 5-day business suspension
Second violation: 10-day suspension
Third violation: 20-day suspension
Fourth violation: Possible permanent closure ordered by local authorities
Price transparency rules will also be strengthened. Guesthouses and urban homestays catering to foreign visitors, previously exempt, will now be subject to mandatory price disclosure rules. Rural homestays will be required not only to display prices but also to strictly adhere to them.
In addition, businesses penalized for price gouging may lose eligibility to accept Onnuri Gift Certificates and Local Love Gift Certificates, government-backed consumer payment programs.
The government plans to amend enforcement regulations in April and pursue legislative revisions within the year to formally establish the pre-reporting pricing system.
“These measures aim to protect consumers, restore trust in Korea’s tourism sector, and ensure that major global events are not overshadowed by unfair commercial practices,” the ministry said.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
