The Korea Consumer Agency said on the 29th that it issued a "price-gouging lodging fee consumer damage prevention alert" with the Korea Fair Trade Commission and the Busan Consumers Association. The move comes after cases in the Busan area of lodging businesses demanding additional payments on confirmed reservations or unilaterally canceling bookings ahead of BTS concerts to be held in Busan on the 12th–13th of next month.
According to recent complaints filed with the Korea Consumer Agency, a person identified as A received notice from a Busan lodging establishment two months after making a reservation that the booking was canceled due to "overbooking" and a "wrong price notice." The person later confirmed that the same establishment was reselling the room at about five times the amount originally booked.
A person identified as B was recently told by the accommodation booked on Jan. 1 to either pay an additional 500,000 won because "peak season rates must apply" or cancel the reservation.
The Korea Consumer Agency explained that even if a lodging business demands extra payment after a reservation is confirmed, consumers are not obligated to comply. Under the enforcement rules of the Public Health Control Act, lodging operators must adhere to posted room rates.
If damage occurs, such as a demand to cancel a reservation or a contract termination without consent, consumers can seek consultation or redress through the 1372 Consumer Counseling Center, the 1330 tourism information call center, or Consumer24.
The Korea Consumer Agency and the Korea Fair Trade Commission (FTC) are also looking into whether unfair transaction practices, including collusion in the lodging industry, are occurring so that domestic and international fans visiting Busan for the concerts do not suffer harm. Acts such as businesses sharing price information to set room rates or establish a price floor may constitute collusion under the Fair Trade Act.
They also said that unfairly bundling goods or services could disrupt market order and infringe on consumers' right to choose.
The two agencies conducted a "joint inspection of lodging businesses during the BTS concert week" on the 13th. They also plan additional joint inspections on the 29th and on the 8th and 9th of next month with the Ministry of the Interior and Safety, the Ministry of Culture, Sports and Tourism, the Ministry of Health and Welfare, and the National Tax Service.
The government has also moved to secure alternative lodging. The previous day, the Ministry of Finance and Economy and the Ministry of Culture, Sports and Tourism co-chaired a meeting of the "task force on eradicating local price-gouging," where universities, religious facilities, training centers of public institutions, and youth training facilities in nearby areas such as Busan, Yangsan, and Changwon agreed to provide paid or free lodging to domestic and international tourists. About 1,300 alternative accommodations have been secured.