A revised Tourism Promotion Act banning designated travel agencies from low-cost tour operations and forced shopping, while establishing grounds for administrative action when foreign group tourists go absent without leave, has passed Korea's National Assembly. The government has strengthened its management and sanctions framework for the foreign group tourism market through legislation.
The Ministry of Culture, Sports and Tourism announced Thursday that the revised Tourism Promotion Act, which includes prohibited acts by designated travel agencies and grounds for administrative action, passed the National Assembly plenary session on Wednesday. Designated travel agencies are travel firms appointed and managed by the government to attract foreign group tourists from countries with which Korea has signed intergovernmental agreements or memorandums of understanding (MOUs).
The core of the revision explicitly defines illegal and improper business practices by designated travel agencies handling foreign group tourists as prohibited acts. Going forward, designated travel agencies will no longer be able to conduct low-cost tour operations in which they excessively reduce the cost of attracting group tourists and then recover profits through shopping commissions. Forcing purchases on tourists, using insulting language, and covering guide fees with shopping commissions are also prohibited.
The ministry established grounds to impose business suspensions of up to six months or revoke the designation of travel agencies that violate these prohibited acts.
New management rules were also established for cases of unauthorized departures by foreign group tourists. If tourists attracted by a designated travel agency go absent without leave for purposes other than travel, the agency can face business suspension or license revocation based on factors including the number of absconders, departure rate, reasons, and frequency of incidents.
Provisions were also included to allow cooperation with relevant central administrative agencies during the designation and management of travel agencies. The aim is to build a whole-of-government response system linked to immigration and residency management.
The revision serves as follow-up legislation to the previously introduced "designated travel agency for attracting foreign group tourists" system. While the existing framework centered on the designation system itself, this revision focuses on specifying operational standards and sanction measures.
The ministry plans to establish detailed standards for prohibited acts and administrative action criteria related to unauthorized departures through subordinate legislation. The law will take effect six months after promulgation.
