The South Korean government has stepped in to address “price gouging” by accommodation providers in Busan following the announcement of K-pop sensation BTS’s highly anticipated concert in the city.
On May 28, during a “Task Force Meeting on Eradicating Local Price Gouging” held at the Government Complex Seoul, the Ministry of Economy and Finance and the Ministry of Culture, Sports and Tourism announced, “To combat price gouging in the Busan area, approximately 1,300 alternative accommodation facilities, including university dormitories and public institution training centers, have been secured.”
BTS is set to hold their ‘BTS WORLD TOUR ‘ARIRANG’ IN BUSAN’ at the Busan Asiad Main Stadium on June 12th and 13th. This marks their return to the same stage after three years and eight months, following their “Yet to Come” in BUSAN concert in October 2022, which was held to support Busan’s bid for the 2030 World Expo. The venue also holds significant meaning as it was the location of their last full-group performance before military enlistments. Notably, the second day of the concert, June 13th, is BTS’s debut anniversary, adding unique symbolism to the event.
In an initial step, the Ministry of Culture, Sports and Tourism reportedly requested cooperation from the accommodation industry during recent discussions, urging fair pricing for lodging facilities near the concert venue. Separately, a joint special on-site inspection involving various government ministries will be conducted. On May 29th, June 8th, and 9th, the government, with participation from the National Tax Service and the Fair Trade Commission, will intensively inspect accommodation establishments near the concert venue, focusing on their operational status, sanitary conditions, and any evidence of price collusion. If violations are found, corrective orders, business suspensions, and other punitive measures will be immediately initiated.
Busan Metropolitan City is also actively working to eliminate price gouging. Until June 15th, the city will conduct special investigative operations targeting accommodations around key areas like Busan Station, Seomyeon, the concert venue, and other tourist spots. Violations such as operating unregistered accommodations, failing to display or adhere to accommodation prices, and breaching hygiene standards will result in severe actions, including criminal charges and administrative penalties.
The consumer damage reporting system will also be strengthened. Cases of damage, such as reservation cancellations, reported through local number 120 and the Tourism Complaint Center 1330, will be immediately shared with local governments like Busan City for on-site inspections. Furthermore, these reports will be forwarded to the National Tax Service to investigate potential tax evasion, establishing a comprehensive collaborative system.
To further encourage reporting, the government is also pushing for revisions to relevant regulations, which would abolish the limit on reward payments for whistleblowers and allow for rewards of up to 10% of the administrative fines collected.
