Busan City said it will begin a special crackdown on illegal acts by lodging businesses starting on the 23rd ahead of the BTS world tour concert in Busan in June.
This measure is a follow-up to the decisions made at the "public-private joint price stabilization countermeasures meeting" held on Jan. 23 by Busan City. At the time, the city pledged to establish a "price stabilization response manual" and strengthen on-site inspections to curb sharp increases in accommodation rates during large events.
This crackdown is a key step in carrying out that pledge. The crackdown will focus on illegal acts by lodging businesses that violate the Public Health Control Act.
Key targets include: ▲ operating unreported lodging businesses such as officetels and dwellings via home-sharing intermediary platforms that threaten tourist safety ▲ failing to post guest rate lists, which infringes on consumer rights ▲ failing to comply with posted room rates, which hinders the establishment of a fair and transparent lodging reservation culture.
Room rates at lodging facilities in the Busan area for June 13–14, when the BTS concert is scheduled, have surged by as much as sevenfold.
According to data released on the 13th by the Korea Fair Trade Commission and the Korea Consumer Agency (KCA), the average one-night room rate at 135 lodging businesses in Busan—including hotels, motels and pensions—on the weekend of the concert (June 13–14) was 433,999 won. That is 2.4 times higher than the weekends of the previous and following weeks. At some individual businesses, rates were raised by as much as 7.5 times (650%) compared with usual.
In response, Busan City and the special judicial police plan to pursue criminal charges and administrative measures by the competent authorities against businesses where violations are found, in accordance with relevant laws. Depending on the act, violations may be punished by up to six months in prison or a fine of up to 5 million won, and up to two years in prison or a fine of up to 20 million won.
Park Heong-joon, the Busan mayor, said, "The BTS world tour concert in Busan is a precious opportunity that will focus the world's attention on Busan," adding, "We will protect Busan's tourism image and provide high-quality services to visitors through thorough crackdowns and preemptive responses to illegal lodging."