Presidential Intervention Marks a New Era in Tourism Protection
South Korea has unveiled an aggressive campaign to eliminate price gouging and unfair trading practices targeting international visitors, signaling a fundamental shift in how the nation manages its booming tourism industry. The comprehensive measures, announced during an expanded National Tourism Strategy Meeting at the presidential office Cheong Wa Dae on Wednesday, introduce severe penalties for businesses caught overcharging tourists, including mandatory business suspensions and potential license revocations. President Lee Jae Myung personally chaired the session, marking the first time a South Korean president has attended such a meeting in seven years, since 2019, underscoring the high priority placed on cleaning up the tourism sector. The initiative comes as the country aims to attract 30 million foreign visitors by 2029, accelerating the original target year by twelve months, while grappling with dramatic price surges in cities like Busan ahead of major cultural events.
The government has framed the crackdown as essential to converting the global popularity of Korean cultural exports into sustainable economic growth. President Lee has repeatedly characterized price gouging as an “anachronistic malpractice” and “malicious exploitation that destroys order in the entire market,” demanding that penalties be severe enough to ensure losses “far greater than any unjust profits gained.” The meeting brought together Prime Minister Kim Min-seok, 15 government ministers, and key private sector figures including Lee Boo-jin, chairperson of the Visit Korea Committee and CEO of Hotel Shilla, who pledged to work with businesses and government agencies to resolve traveler inconveniences across all regions.
Sweeping Legislative Changes and Enforcement Mechanisms
The new regulatory framework represents a dramatic escalation from previous voluntary compliance systems. Under legislation set for revision in the first half of this year, restaurants and lodging businesses that fail to display price lists or charge beyond posted rates will face a five-day business suspension starting with the first offense, replacing the current system of warnings and corrective orders. Accommodation providers that reach four violations will face mandatory business closure or cancellation of their registration. For the first time, rural homestays and urban homestays catering specifically to foreign tourists will be subject to these penalty provisions, closing previous regulatory loopholes.
A particularly contentious practice, the unilateral cancellation of existing reservations to resell rooms at higher prices during peak demand, will now trigger the same five-day suspension from the first offense. The government is also establishing standardized compensation standards to ensure tourists receive refunds and damages when providers engage in such “opportunistic” behavior. In the transportation sector, taxi drivers caught overcharging will face an immediate 30-day license suspension on the first offense, escalating to 60 days on the second detection, and permanent license revocation on the third, implementing a strict “three-strikes” policy designed to deter predatory pricing at airports and tourist hotspots.
The enforcement drive extends to Jeju Island, where authorities will introduce a “maximum discount limit” regulation for car rental companies to prevent misleading marketing practices. Some operators had been inflating base prices before advertising steep discounts, confusing international travelers about actual costs. The new rules will require companies to base rates on actual financial statements rather than speculative demand, potentially reducing peak-season rental costs by as much as 50 percent compared to previous years. Regional governments that proactively combat price gouging will receive financial incentives, while the central government plans nationwide on-site inspections targeting traditional markets and accommodation clusters.
The BTS Effect and Busan’s Response
The urgency behind these measures became starkly apparent following the announcement of BTS’s world tour dates, which triggered extreme price volatility in the southeastern port city of Busan. When the K-pop group scheduled concerts for June 12 and 13 at the Busan Asiad Main Stadium, accommodation rates within a five-kilometer radius skyrocketed to 3.5 times normal levels, with some motels increasing prices from 100,000 won ($67) to as much as 750,000 won ($520) per night. A Fair Trade Commission survey found that 10 percent of lodging businesses in the area were charging prices over five times the usual rate, with one facility in Dongnae District marking up its overnight cost from 68,000 won ($46) to 769,000 won ($521).
The controversy intensified when reports emerged that some hotels were pressuring guests to cancel existing reservations so rooms could be relisted at inflated rates. This sparked widespread outrage among the BTS fanbase, known as ARMY, and highlighted systemic vulnerabilities that the new legislation specifically targets. In response, Busan Metropolitan City has implemented a “QR Code Reporting for Price Gouging” system that allows tourists to scan codes at accommodation sites and immediately file complaints, which are forwarded via the Korea Tourism Organization’s Tourist Complaint Center (1330) to relevant authorities. The city has distributed promotional stickers and posters district-wide and formed joint inspection teams with local governments to conduct on-site checks of reported facilities.
We are looking ahead to welcoming five million foreign tourists to Busan. By visiting sites in person, we will ensure that visitors coming to Busan for this occasion can stay longer and build lasting positive memories.
Busan Mayor Park Hyung-joon made this commitment as the city mobilizes administrative resources to prevent unfair practices ahead of the concerts, which coincide with the group’s debut anniversary and feature hometown members Jimin and Jungkook. The city plans to use its official social media channels to guide visitors toward accommodation clusters with good public transportation access, dispersing booking concentration away from the immediate venue area.
Visa Reforms and Immigration Modernization
The anti-gouging measures form one pillar of a broader strategy to transform South Korea into a global tourism powerhouse capable of competing with neighboring Japan, which welcomed a record 43 million visitors in 2025. To support the ambitious 30 million visitor target, the government announced significant visa liberalization policies. Indonesia will be included in a pilot program granting visa-free entry to tourist groups of three or more travelers, following Japan’s example of a fourfold increase in Indonesian visitors after introducing similar waivers in 2014. Citizens of China and Southeast Asian nations with previous Korean travel records will become eligible for five-year multiple-entry visas, while residents of major cities in those countries can apply for ten-year visas.
Immigration procedures will see technological upgrades designed to reduce entry friction. The automated immigration clearance system, currently available to 18 nations including Japan, Singapore, and Australia, will expand to cover European Union nationals. The government will increase the number of automated checkpoints at Incheon International Airport and other entry points to shorten processing times. These changes complement plans to transform regional airports into inbound tourism hubs through dedicated air traffic rights and reduced facility usage fees for airlines establishing new international routes to cities beyond Seoul. Currently, 80 percent of foreign tourists concentrate in the capital, a pattern President Lee warned would cause the industry to hit a growth ceiling if not addressed.
Private Sector Alignment and Regional Development
The success of the initiative depends heavily on cooperation between government regulators and the private hospitality sector. Lee Boo-jin, who serves as the Visit Korea Committee chairperson and is the younger sister of Samsung Electronics Chairman Lee Jae-yong, attended the presidential meeting to pledge industry cooperation. She emphasized that Korea has become “not just a country they want to visit, but a wonderful place that they want to live in like Koreans do,” committing to resolve payment, transportation, and information inconveniences regardless of region. Hotel Shilla’s involvement signals high-level chaebol support for the regulatory changes, which may help ensure compliance across the premium accommodation sector.
The government is also addressing accommodation quality shortages outside Seoul by planning a new Accommodation Promotion Act and quality certification system. A Korean version of Spain’s “parador” model will convert traditional houses, temples, and folk villages into premium stays, dispersing tourist spending to rural economies. Cruise terminals, currently operating until 10 p.m., will trial 24-hour service starting with the Busan Port International Passenger Terminal, while late-night airport bus services will extend beyond the Seoul metropolitan area to Chungcheong and Gangwon provinces. KTX high-speed rail tickets will become available for advance booking earlier than the current one-month window to facilitate regional travel planning.
From Volume to Value
Culture Minister Chae Hwi-young characterized the current moment as a “golden time” for Korean tourism, noting that the global resonance of K-culture provides a unique opportunity to establish the country as a top-tier destination. However, officials recognize that visitor volume alone does not guarantee economic benefits if first-time visitors encounter exploitation and choose not to return. The Korea Tourism Organization’s Complaint Center (1330) and the integrated local government hotline (area code + 120) serve as reporting channels for tourists experiencing rip-off pricing, with data showing that foreign visitors comprise the majority of complainants, citing unfair taxi fares and accommodation issues as primary concerns.
The strategic emphasis has shifted from simply attracting first-time visitors drawn by K-pop, dramas, and films, to converting them into repeat travelers who explore regional destinations. President Lee stressed that tourism must evolve beyond “simply selling products” to become a cultural sector that “creates someone’s precious memories.” By rooting out the price gouging, unfriendliness, and excessive touting that he identified as “vicious practices,” the government hopes to ensure that the fruits of tourism growth reach small business owners and alleyway commercial districts across the nation, rather than concentrating profits among exploitative operators during peak events.
What to Know
- President Lee Jae Myung chaired the first National Tourism Strategy Meeting attended by a president in seven years, announcing a target of 30 million foreign visitors by 2029.
- Businesses failing to display prices or honor listed rates now face immediate five-day suspensions, with lodging providers facing closure after four violations.
- Taxi drivers overcharging tourists receive 30-day license suspensions on first offense, escalating to permanent revocation on third offense.
- A QR code reporting system in Busan allows tourists to immediately report price gouging, with complaints forwarded to authorities via the 1330 Tourist Complaint Center.
- Indonesia will receive visa-free entry for tourist groups of three or more, while China and Southeast Asian nationals gain access to five-year and ten-year multiple-entry visas.
- Automated immigration gates will expand to EU nationals, and regional airports will receive incentives for new international routes to disperse tourism beyond Seoul.
- The measures respond to hotel price surges of up to 10 times normal rates in Busan ahead of BTS concerts, with some motels jumping from $46 to $521 per night.
- Jeju Island car rental companies face new rate stabilization rules that could reduce peak-season costs by up to 50 percent.
