South Korea's government is moving to introduce stricter penalties on lodging price gouging after some hotels in Busan raised room rates by 10 to 20 times their normal levels ahead of an upcoming BTS concert, sparking widespread criticism.
With fans flocking to Busan from across Korea and overseas to attend the concert, complaints have mounted that excessive price hikes are damaging the city's reputation as a tourist destination.
Online communities and social media platforms have been flooded with posts claiming that hotel rates surged from tens of thousands of won to hundreds of thousands or even millions of won per night, raising concerns about lasting damage to the region's tourism image.
Government Pushes 'Anti-Gouging Price Assurance System'; Violators Face Immediate Business Suspension
The Ministry of Culture, Sports and Tourism and related government agencies have recently launched a joint task force to introduce what is being called the "Anti-Gouging Price Assurance System," officials said Wednesday.
At the core of the plan is a pre-registration system for lodging rates. Under the proposal, accommodations would be required to register their rates in advance during peak seasons and regional events, and disclose them to consumers. Cases of non-disclosure, false advertising, failure to honor registered rates, or unilateral booking cancellations would no longer result in mere warnings but instead trigger immediate business suspension.
The government is also overhauling its lodging evaluation system. Establishments confirmed to have engaged in price gouging would face significant deductions in hotel rating assessments, which would directly affect their visibility on booking platforms and competitiveness in room sales.
1,300 Alternative Lodgings Secured in Push to Restore Tourism Image
The central government and the Busan Metropolitan City have also prepared emergency measures to ease the lodging shortage during the BTS concert period. They plan to secure approximately 1,300 alternative accommodations by utilizing university dormitories, public institution training centers, youth facilities, and religious facilities, and to offer them at reasonable prices.
The government is also revising its whistleblower reward system to encourage internal reporting of price collusion and unfair practices in the lodging industry. Officials are reviewing a plan to abolish the current cap on whistleblower rewards and instead pay out a fixed percentage of fines imposed on offending businesses. Industry observers are watching closely to see whether the measures will go beyond a one-off response to the BTS concert and serve as a turning point in addressing the chronic problem of price gouging across Korea's tourism industry.
"Enough Already": BTS Members Speak Out
BTS members themselves had publicly voiced concerns over the price gouging. On Nov. 26, the members shared their views on the Busan lodging controversy through Weverse, the group's fan communication platform.
"Of course there is such a thing as peak-season pricing, but let's keep it within reason," RM said. "I've heard that some fans are choosing overnight schedules without lodging or staying at jjimjilbang (Korean saunas) because they couldn't find rooms." Jimin, who is from Busan, said, "I want fans to have a good experience in Busan, but it pains me to see this. There has to be a limit—how can they raise prices several times over?" Jungkook also expressed his disappointment over the excessive price hikes, saying "Goma haera" (Enough already) in Busan dialect.
