The South Korean government has initiated a crackdown on unfair practices in the hospitality sector, particularly surrounding large-scale events like concerts. This decision comes in response to reports of hotels in Busan significantly inflating prices and cancelling pre-existing reservations when the highly popular BTS announced a concert in the city. During a national tourism strategy meeting led by President Lee Jae-myung, Deputy Prime Minister Kyun-taek announced that lodgings would face immediate shutdowns of up to 20 days for repeated violations, with a complete closure for businesses that persistently disregard these regulations.

Furthermore, the measures will be enforced through amendments to existing public health management laws. Individuals and establishments found guilty of arbitrary changes to pricing or cancelling reservations made by guests will face strict penalties. Companies such as Airbnb and various forms of guesthouse operations will fall under the same legal framework, levelling the playing field across different types of lodging services. The intention of these regulations is not only to protect consumers but also to promote fair pricing practices within the hospitality industry.

To ensure price transparency, hotels will be encouraged to adopt a system where seasonal and non-seasonal pricing is self-reported annually to a government body. The government aims to establish a transparent environment where price gouging is minimized without direct interference in price setting. The proactive monitoring of pricing trends will be crucial for preventing collusion among operators, ensuring fair competition in the evolving hospitality market as it recovers from the pandemic.