Korea to fine lodging platforms 5 million won for listing unverified properties

South Korea's health ministry said Monday it will fine online lodging intermediaries 5 million won ($3,725) for brokering accommodation whose business registration certificate they cannot confirm, under an enforcement decree that takes effect Nov. 12.

The penalty, set in a partial revision of the enforcement decree of the Public Health Control Act, was promulgated on Oct. 20 and takes effect Nov. 12. Until now, online travel agencies and other intermediaries that sell lodging had no separate obligation under the act to check whether a property had filed its business registration. The ministry said the requirement is meant to block unregistered lodging businesses from reaching customers online.

From Nov. 12, intermediaries must verify the certificate whenever they broker a lodging product and must not list a property whose registration they cannot confirm. Anything still being brokered after the start date must be checked for lawful registration, and unverified products must be taken down. The penalty is written into the enforcement decree's table of fine standards.

The obligation reaches beyond online travel agencies that register rooms directly with lodging operators. It also covers platforms that receive lodging products from another travel agency or supplier and display them on their own screens while arranging the actual sale.

Ahead of the start date, the ministry is distributing operating guidelines on restricting online sales of unregistered lodging to local governments and intermediaries, covering who the law applies to, intermediaries' duties, and the procedure and standards for imposing fines, to limit confusion in the early days of enforcement.

"We will raise the reliability of the online lodging booking process so that people can use accommodation with confidence," said Kim Han-suk, director-general of the Ministry of Health and Welfare's health policy bureau.

Kim also urged travelers to check a facility's business information and to use lodgings that are lawfully registered.