South Korea imposes immediate suspensions for price gouging in lodging

The Ministry of Food and Drug Safety said Tuesday that businesses operating traditional Korean houses and foreigner guesthouses will face immediate five-day suspensions for a first offense of failing to post rates or overcharging customers. The stricter penalties take effect August 4 following a cabinet approval of revisions to the tourism promotion law enforcement decree.

Previously, a first violation resulted only in an order to correct the behavior. The new rules also close a regulatory gap for foreigner guesthouses, which had no existing requirements to display prices. The government moved to strengthen these measures after excessive pricing during peak seasons and large-scale events damaged tourists and the national image.

Under the updated framework, a second violation leads to a 15-day suspension, a third to a one-month halt and a fourth to the cancellation of business registration entirely. These measures align with similar changes implemented July 14 for general lodging under public health regulations, where first offenses now also trigger five-day suspensions rather than warnings.

The government plans to extend these strict penalties to the taxi and restaurant sectors once ongoing revisions to relevant transport and food sanitation rules are finalized. Officials stated they will investigate violations during the peak summer travel season.

Koo Yoon-chul, deputy prime minister and minister of economy and finance, said, "Ahead of the full-scale summer vacation season, we will closely check the implementation status of the measures to eradicate rip-off fees and minimize consumer damage."