Key facts
- South Korea will implement tougher penalties for overcharging in the tourism sector starting August 4.
- Hanok operators and foreign tourist home-stay businesses will be subject to new price list regulations.
- First-time offenders for not posting or complying with price lists will receive a five-day business suspension.
- Taxi drivers face immediate 30-day license suspension for overcharging, with subsequent offenses leading to revocation.
- The government aims to address unfair practices and promote tourism.
South Korea is set to implement stricter penalties for overcharging within its tourism sector, including accommodation and restaurants, effective August 4. The government's move, approved by the Cabinet through revisions to the Enforcement Decree of the Tourism Promotion Act, aims to enhance the country's appeal to tourists by addressing unfair business practices.
Under the revised regulations, operators of traditional Korean houses, known as hanoks, who fail to display or adhere to posted price lists will face a five-day business suspension for an initial offense, a significant increase from the previous warning. Foreign tourist home-stay businesses in urban areas will also now be required to comply with price list regulations. For general accommodation businesses, subsequent violations will lead to extended suspension periods, with second offenses resulting in 10-day suspensions and third offenses in 20-day suspensions, up from the previous seven and 15 days, respectively.
The crackdown extends to taxi services, where drivers will immediately receive a 30-day license suspension for overcharging passengers, a departure from the current warning system for first-time offenders. A second offense will result in a 60-day suspension, and a third violation will lead to license revocation. The Ministry of Finance and Economy indicated that further efforts are underway to combat other unfair practices, such as unilateral reservation cancellations by businesses without valid reasons.