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SisaWeek reporter Kwon Jeong-du Ahead of BTS’s concerts in Busan, some lodging operators have imposed outrageous, exploitative prices, provoking public outrage. They have sharply raised rates during the shows, canceled existing reservations and demanded extra fees, producing multiple complaints and victims. Both BTS and the president have publicly criticized the practice, and there are concerns that a handful of greedy operators could seriously damage Busan’s international reputation.
What stands out is that this pattern has persisted for years. Whenever fireworks festivals light up Yeouido or Gwangalli, price gouging predictably resurfaces and draws widespread condemnation. It also mars local festivals, major events, concerts and holiday seasons. The offenders come from many types of businesses. A quick news search shows the stories are virtually the same as decades ago.
Price gouging benefits only greedy operators and causes widespread harm. It injures not only attendees of events and festivals but also other consumers, and it undermines the organizers’ intent. It is a cowardly free ride and a short-sighted grab for quick profit. If visitors stop coming because of persistent gouging, those responsible will have shot themselves in the foot.
Every time a gouging scandal breaks, criticism is fierce and authorities sometimes act. Yet the practice endures despite repeated outcry. The reason is clear: those who gouge know it is wrong but are blinded by money. They calculate that earning extra income outweighs reputational costs. Some rationalize that if everyone does it, being honest makes you a fool. Tepid public pressure and weak penalties will not deter them; they only encourage worse behavior.
Therefore, solutions must address that mindset. Potential gougers must fear severe consequences rather than see events as surefire opportunities to cash in. Only then will price gouging disappear.
In that light, the government’s response deserves attention. At the end of last month, the Ministry of Economy and Finance and the Ministry of Culture, Sports and Tourism formed a joint task force to devise countermeasures. They plan to accelerate legislation to prohibit gouging and aim to complete the bill by year-end.
The government’s February anti-gouging package focuses on boosting price transparency, promoting reasonable pricing, strengthening institutional incentives and building public–private cooperation. The most notable measure is a “one-strike-out” rule. Previously, a first detection typically resulted only in correction orders without meaningful sanctions. Under the new plan, a first offense can lead to a suspension of operations. The government will also introduce a Gouge-Free Price Program requiring lodging providers to pre-register and publish rates for weekdays, weekends, off-season and peak-season periods, and for special events like festivals. Businesses that comply would receive a Trusted Price designation and other incentives; those that do not would face legal penalties. Officials also plan to tighten sanctions against accommodations that unilaterally cancel existing reservations.
President Lee Jae-myung, when he served as governor of Gyeonggi Province, led a major overhaul of illegal valley businesses—one of society’s entrenched problems. Price gouging is a similarly serious abuse. This time, we should see robust, effective measures, not toothless, symbolic responses.
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