‘No more rip-off’: South Korea moves to end unfair pricing amid concern over negative image among tourists


Most complaints in South Korea involve unfair taxi fares. Taxi drivers caught overcharging passengers will face an immediate 30-day licence suspension even on a first offence, part of a strengthened “three-strikes” system that can lead to permanent licence revocation. - The Korea Herald/ANN

SEOUL: South Korea on Feb 25 signalled a shift away from a visitor-volume strategy, unveiling measures to encourage repeat visits by tackling price gouging and unfair practices affecting international travellers.

The initiative reflects growing concern that negative first impressions – ranging from inflated hotel rates to taxi overcharges – could undermine the country’s rising global appeal through K-pop, film and streaming content.

Policymakers say improving visitor experience has become as important as promotion itself as South Korea seeks sustainable tourism growth.

“Looking at users of the Tourism Complaint Center, the majority are foreign visitors,” Culture Ministry’s tourism policy office chief Kang Jung-won told reporters on Feb 24, a day before a presidential meeting on tourism-boosting strategies.

“Most complaints involve unfair taxi fares, followed by accommodation issues, particularly during major idol performances.”

The authorities are also moving to end so-called unilateral cancellations, in which hotels cancel confirmed reservations and relist rooms at higher prices during large events.

A recent Fair Trade Commission study found that ahead of a BTS concert scheduled for June, average hotel rates in Busan had already risen 2.4 times above normal levels, with some motels increasing prices from 100,000 won (US$70) to as much as 750,000 won per night.

Repeat offenders engaging in such practices could face business shutdowns under the new rules.

The government’s enforcement drive extends beyond lodging. Taxi drivers caught overcharging passengers will face an immediate 30-day licence suspension even on a first offence, part of a strengthened “three-strikes” system that can lead to permanent licence revocation.

Street food vendors and small restaurants will also come under tighter oversight through an expanded “Real-Name Stall System”, requiring clear price displays to prevent tourists from being charged more than local customers.

In Jeju’s car rental market, the authorities plan to introduce a “maximum discount limit” to curb misleading promotions in which companies inflate base prices before advertising steep discounts that confuse international travellers.

Officials said related legislative revisions will be fast-tracked in the first half of 2026 to stabilise market practices ahead of major global events and growing inbound demand.

The push, however, is intended to go beyond any single concert or tourism boom.

South Korean President Lee Jae Myung has framed the effort as part of a longer-term strategy to convert first-time visitors drawn by Korean cultural content into repeat travellers exploring regions outside the capital.

“If tourists return to Korea, they will naturally seek new destinations beyond familiar locations,” Lee said during a National Tourism Strategy Meeting at Cheong Wa Dae on Feb 25.

The Ministry of Culture, Sports and Tourism increased its 2026 tourism goal to 23 million visitors, an ambitious 21.4 per cent increase from 18.94 million recorded in 2025. - The Korea Herald/ANN

 

 

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