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Hanok Stays Face Stricter Price Gouging Rules, But '99 Million Won' Caps Remain Elusive
🇰🇷 South Korea /Culture & Society

Hanok Stays Face Stricter Price Gouging Rules, But '99 Million Won' Caps Remain Elusive

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • South Korea is strengthening regulations against price gouging at traditional Hanok accommodations, with violations now leading to a 5-day business suspension.
  • Despite the new rules, effectively capping exorbitant prices, such as one listing at nearly 100 million won, remains a challenge.
  • The government aims to boost 'K-tourism' by improving regulations as foreign tourist numbers surge, targeting 30 million visitors by 2029.

South Korea is tightening its grip on price gouging at traditional Hanok guesthouses, a move that comes as the nation seeks to capitalize on a surge in international tourism. Starting next month, establishments found to be charging exorbitant prices or failing to clearly display rates will face a five-day business suspension for their first offense. This replaces a previous system that only mandated corrective orders, offering a stronger deterrent.

The accommodation was really good, but the price felt a bit expensive.

— French touristA French tourist who stayed at a Hanok accommodation expressed mixed feelings about the experience, acknowledging the quality but finding the price steep.

The new regulations aim to curb practices like a Hanok stay listed at nearly 100 million won for a two-night stay, a price point that highlights the extreme end of the problem. While many accommodations adjust prices based on season, weekends, and weekdays, some only reveal the final cost upon selecting dates on booking platforms, particularly those catering to foreign tourists.

The accommodation price I booked was okay, but it was difficult to know the price clearly when searching.

— MillonAmerican tourist Millon shared his experience, noting that while his booked price was reasonable, finding clear pricing information during the search process was challenging.

However, the effectiveness of these new rules is being questioned. The regulations primarily focus on ensuring prices are communicated before a contract is signed. If businesses clearly inform customers of price variations, even significant ones, they may not be in violation. This loophole could allow for continued price gouging, especially as "K-tourism" targets 30 million visitors by 2029.

In overseas cases, if the difference between the highest price and the actual selling price is too large, there are regulations and sanctions.

— Jeong Ran-sooJeong Ran-soo, a professor of tourism at Hanyang University, pointed out international practices of regulating significant price discrepancies.

Experts suggest a "carrot and stick" approach is needed. Professor Jeong Ran-soo of Hanyang University's Tourism Department noted that some regions already set seasonal price caps. He proposed that government support programs could limit participation based on maximum prices, incentivizing voluntary compliance. Additionally, bringing online platforms like Agoda and Booking.com, which facilitate shared accommodation rentals, under regulatory oversight is crucial to address pricing issues more comprehensively.

We need to consider the concept of 'carrots' more, such as limiting the scope of participation in government support programs like 'Stay Festa' based on the highest price, so that businesses can voluntarily participate.

— Jeong Ran-sooProfessor Jeong suggested incorporating incentives for businesses to voluntarily comply with pricing regulations.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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