Busan moves to protect fans from price gouging ahead of BTS concerts

Fans walk into the Busan Asiad Main Stadium to attend a BTS concert in Busan, Korea on Oct. 15, 2022. Yonhap

Whenever global K-pop phenomenon BTS announces a performance, a familiar gold-rush mentality tends to seize the host city. But as the group prepares to descend on Korea's second-biggest city for its "ARIRANG" world tour concerts in June, local authorities are moving to ensure that fans aren't fleeced by the local hospitality industry.

The Busan Metropolitan Government announced Wednesday a sweeping crackdown on price gouging, mobilizing an interagency task force to inspect hotels and guesthouses across the southern port city. The initiative, which includes the city’s Special Judicial Police and the Korea Fair Trade Commission, is a preemptive strike against the predatory pricing and unilateral reservation cancellations that have historically marred major cultural events in the region.

The inspections will target establishments flagged by the city’s "tourism inconvenience" reporting system. Under the Public Health Control Act, inspectors will be looking for a range of infractions, from the failure to display mandated rate schedules to the operation of entirely unregistered lodgings. In cases of egregious overcharging or suspicious accounting, the city has threatened to bring in the National Tax Service to investigate possible tax evasion.

The stakes are high for Busan, a city that has staked its international reputation on its ability to host "MICE" events — meetings, incentives, conferences, and exhibitions.

"Fair tourism is not just a consumer protection issue. It is a matter of the city’s long-term brand," a city official said during a campaign launch at Haeundae Beach Wednesday.

To set a standard for transparency, the city is also using the concerts to pilot a voluntary rate disclosure system, intended to become a permanent fixture of the local economy later this year.

Recognizing that even a crackdown may not cool a saturated market, the government is also stepping in as a landlord of last resort. From June 11-13, Busan will convert public facilities, including Mount Geumnyeon and Gudeok youth centers, into temporary lodgings. Even the Naewonjeong Temple will open its doors for a "Temple Stay" program, providing a serene, subsidized alternative for some 400 international fans who might otherwise be priced out of the city’s neon-lit beachfront hotels.

This article was published with the assistance of generative AI and edited by The Korea Times.