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National Tax Service (Photo courtesy of the National Tax Service) |
[Alpha Biz= Paul Lee] South Korea’s government is accelerating a cross-ministerial crackdown on price gouging after hotel room rates surged to as high as 1 million won per night ahead of upcoming concerts by global K-pop group BTS, The Seoul Economic Daily reported exclusively.
According to the report, authorities will announce the measures as early as next week, earlier than originally planned. The plan targets accommodation and restaurant operators and strengthens penalties for violations such as failure to display prices, false or misleading pricing, and substandard services relative to advertised rates.
Notably, the National Tax Service will join the task force for the first time, signaling tougher enforcement. The tax authority is expected to scrutinize inflated cost structures, excessive price hikes, and underreported income, particularly among hotels and food service businesses. The move follows multiple rounds of intensive tax audits targeting companies accused of profiteering through excessive price increases.
Hotel prices in central Seoul, including areas near Gwanghwamun, have spiked sharply ahead of BTS’s comeback stage, with some four-star hotels raising nightly rates more than fourfold compared with typical weekend prices. Similar trends have been observed in Busan, where accommodation rates near the expected concert venue reportedly increased by an average of 3.5 times, with some listings reaching 1.8 million won per night, the newspaper said.
The government is expected to move beyond guidance-level enforcement, applying fines, business suspensions, criminal penalties, and tax investigations depending on the nature of violations. Measures will be enforced under multiple laws, including the Public Health Control Act, Food Sanitation Act, Price Stabilization Act, and Fair Labeling and Advertising Act.
Officials said the timing reflects broader inflation concerns, as personal service prices such as lodging and dining remain elevated despite headline consumer inflation easing to around 2%, raising worries that unchecked event-driven price hikes could undermine price stability and consumer sentiment.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
