Lee Vows to Root Out Price Gouging, Expand Half-Price Travel Programs

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By Kim Sun-young
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Lee: "Expanding half-price travel like Gangjin... Must root out rip-off price gouging" - Seoul Economic Daily Culture News from South Korea
Lee: "Expanding half-price travel like Gangjin... Must root out rip-off price gouging"

The government is preparing a comprehensive action plan to develop tourism as a core national strategic industry and accelerate the goal of attracting 30 million foreign tourists. The plan aims to significantly improve accessibility to Korea by lowering entry barriers for foreigners and expanding entry points through regional airports. Measures to distribute tourism demand concentrated in the Seoul metropolitan area to local regions will also be pursued to establish a virtuous economic cycle.

Lee: "Expanding half-price travel like Gangjin... Must root out rip-off price gouging" - Seoul Economic Daily Culture News from South Korea
Lee: "Expanding half-price travel like Gangjin... Must root out rip-off price gouging"

President Lee Jae-myung chaired an expanded National Tourism Strategy Meeting at Cheong Wa Dae on the 25th, stating, "We must expand tourism policies like Gangjin County's 'half-price travel' program that reduces travel costs while directing benefits to local small business owners." He also pointed to unfair practices such as price gouging and aggressive solicitation, emphasizing, "Malicious abuses must be rooted out."

President Lee added, "If we remain satisfied with the reality that 80% of foreign tourists are concentrated in Seoul, we will inevitably hit a limit." The President personally chairing the meeting for the first time in seven years since 2019 is interpreted as demonstrating his commitment to developing tourism as a "core national strategic industry."

About 60 participants attended the meeting, including Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol, Minister of Culture, Sports and Tourism Choi Hwi-young, Minister of Land, Infrastructure and Transport Kim Yun-deok, Lee Boo-jin as Chair of the Visit Korea Year Committee, and Alberto Mondi as Vice Chairman of the Italian Chamber of Commerce in Korea.

First, the Ministry of Justice will shift long-term multiple-entry visa criteria from occupation and education requirements to "residence requirements." The validity period for multiple-entry visas will be extended to 10 years for residents of 14 Chinese cities including Beijing, Shanghai, Guangzhou, and Shenzhen, as well as Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Visa-free entry for Indonesian group tourists (three or more) will also be permitted on a pilot basis.

The government will also significantly expand direct international flights to regional airports and build transportation infrastructure to enable tourists entering through Incheon International Airport to easily travel to other regions. Plans include establishing and increasing domestic flight routes between Incheon Airport and regional airports, expanding late-night airport buses, and extending advance booking periods for KTX high-speed rail. On-board immigration screening for large cruise ships will also be expanded to alleviate embarkation and disembarkation bottlenecks.

President Lee said, "We must ensure that the enthusiasm sparked by K-culture does not remain as cheers on monitors but allows people worldwide to experience Korea firsthand." He added, "From regional airports and cruise infrastructure to immigration system improvements, everything must be thoroughly examined from the perspective of users, not providers." The directive aims to minimize inconvenience from the tourist's perspective rather than a government-centered approach.

The accommodation promotion system will also be restructured to meet demand for extended stays. The Ministry of Culture, Sports and Tourism's oversight, previously focused on tourism accommodation businesses such as tourist hotels (approximately 3,000 establishments), will expand to include general lodging and lifestyle accommodation businesses such as motels and pensions (approximately 27,000 establishments). To this end, the government plans to enact an Accommodation Business Act (tentative name) and establish an integrated information platform for lodging facilities.

Investment regulations will also be eased to expand accommodation infrastructure. The traffic inducement coefficient (a standard for calculating charges reflecting the degree of traffic congestion caused by buildings) applied to 4 and 5-star tourist hotels will be reduced from 2.62 to 1.64 to lower the burden. Hotels with 100 or more rooms will be allowed to build near universities if they meet certain requirements, such as installing open common spaces and not operating harmful facilities like entertainment bars.

The government also plans to expand medical tourism and international conference-linked tourism, which generate higher per-tourist spending. To expand the regional base for medical tourism, the application requirements for "Excellent Medical Tourism Attraction Organization" certification will be eased from 500 cases to 200 cases. Dedicated automated immigration gates for MICE (Meetings, Incentives, Conferences, and Exhibitions) visitors will also be installed. As of 2024, the average spending per general tourist is 2.05 million won, compared to 3.83 million won for MICE visitors and 8.11 million won for medical tourists.

Building on these institutional and infrastructure improvements, the government will re-launch "Visit Korea Year" for 2027-2029. This national campaign involves concentrated large-scale promotions and publicity by public and private sectors to attract overseas tourists. This time, joint public-private campaigns will expand discount promotions, events linked to K-pop, K-food, and K-beauty, and programs combining regional tourism products.

Chair Lee, who is also President of Hotel Shilla and attended the meeting, promised bold support, saying, "We will work with companies and relevant ministries to resolve inconveniences in payment, transportation, and tourism information."

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AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.