BTS, the globally popular K-pop group, is set to begin their world tour with a performance at Gwanghwamun Square in Seoul next month. In anticipation of the event, hotel bookings in the area have skyrocketed, leading to dramatic price increases. For instance, five-star hotels in Gwanghwamun are fully booked, while a four-star hotel that usually charges around 200,000 KRW is now asking about 800,000 KRW the night before the concert. Similar patterns are observed in Busan, where hotel prices near the concert venue have also spiked significantly, prompting concerns from government officials about exploitative pricing practices.

The phenomenon of 'tourflation'—where by large events drive up accommodation and living costs—has been noted in other countries, particularly with pop stars like Taylor Swift. Analysis revealed that in the UK during her 2024 world tour, hotel prices rose dramatically in cities hosting her concerts, significantly impacting local inflation rates. This is drawing parallels to the potential for BTS's concerts to influence inflation in South Korea as hotel prices soar in concert zones.

Past instances, such as the APEC summit in Gyeongju last October, have shown how significant events can increase demand and, consequently, prices. During the APEC meetings, consumer price inflation observed a slight uptick, attributed to accommodation price increases that outstripped general inflation trends. With BTS on the horizon, the concern is that similar inflationary pressures could arise during their concert dates, affecting both local residents and visitors alike.