1 in 3 guesthouses have no licenses

By Jung Min-ho

Kim Nam-chul, who runs a guesthouse near Hongik University, a popular tourist destination in western Seoul, has seen many business competitors spring up in the neighborhood over the past few years.

“When I started this business four years ago, there were only four guesthouses here. Now there are more than 200,” he said.

It turns out that one in three guesthouses scattered across the city operate without a license, the Ministry of Culture, Sports and Tourism said Monday.

Over the last month, ministry officials randomly checked 132 guesthouses in four districts of Seoul and found 44 of them (33 percent) were run illegally, without proper safety and sanitation facilities.

The ministry has reported the guesthouses (18 in Mapo, 10 in Yongsan, 10 in Gangnam and six in Jongno) to police.

“The lack of safety-related facilities is the biggest problem for those illegal guesthouses,” a ministry official said. “They are more vulnerable to accidents such as fire because they do not get safety checks regularly like other legal accommodation. And in the case of an emergency, they are more dangerous for guests because they are not required to have equipment such as fire extinguishers and flashlights.”

Also, the official said, their operations often cause inconvenience to residents who live nearby.

“District offices often get complaints from residents about loud music at night and trash thrown away on the streets,” the official said.

Kim, a 27-year-old Mapo resident who refused to reveal her full name, said she has not had a major problem with the increased number of guesthouses. But she said they have changed the vibe of her neighborhood.

“I see more tourists walking around these days,” she said. “Many homeowners use their houses as accommodation for tourists instead of collecting monthly rent because they can make more money that way.”

Near Hongik University, there is now what residents call “the village of guesthouses,” which has grown in size thanks to easier access to the airport. She suspects many of them operate illegally.

Under the Public Health Control Law, commercial accommodation must be registered with district offices. If not, violators can face up to one year in prison or a 10 million won ($9,100) fine.

Yet, in most cases, violators get away with just a slap on the wrist, with a fine of less than 3 million won.

With the little risk they have, many guesthouse owners choose to run their businesses illegally, the ministry official said.

“We will cooperate with the Ministry of Health and Welfare to strengthen the law,” the official said. “We also will continue to crack down on illegal guesthouses.”

Yet, that strategy will not solve the fundamental problem as accommodation in Korea hardly keeps up with the increasing number of overseas tourists, largely from China.

According to the Korea Tourism Organization, accommodation in Seoul is in short supply today with 40,473 rooms, while 47,699 are needed.