Hotels that cancel BTS concert bookings to face 200% compensation requirement

Accommodation businesses that cancel existing reservations to charge higher prices will be required to refund deposits and pay an additional 200 percent of the canceled booking rate in compensation, under measures the government announced Thursday.

The Ministry of Economy and Finance unveiled the plan at a ministerial task force meeting on consumer price management, presenting an update on the government's campaign to eliminate price gouging and outlining next steps.

The government moved to tighten rules on unilateral reservation cancellations and raise consumer compensation standards after a wave of price-gouging complaints emerged ahead of BTS's Busan concerts scheduled for June 12 and 13.

According to the government, 311 accommodation-related complaints had been filed in connection with the Busan concerts as of May 29. Of those, 256 — or 82 percent of the total — involved reservation cancellations, while 48 concerned excessive pricing.

The government is also pushing to introduce a "price assurance" system that would require accommodation businesses to report seasonal and event-period rate caps to local governments and disclose them publicly.

New regulations penalizing unjustified unilateral cancellations are also planned. A bill to amend the relevant law is set to be introduced this month, with the government targeting passage by the end of the year.

Consumer compensation rules will be strengthened as well. The Korea Fair Trade Commission plans to revise its consumer dispute resolution standards so that businesses that cancel reservations to raise prices or resell bookings must refund deposits and pay an additional 200 percent of the canceled rate.

The government is also pursuing an amendment to the Traditional Markets Act that would allow authorities to revoke the Onnuri gift voucher merchant registration of businesses penalized for price gouging.

Meanwhile, the government is working to ease an expected accommodation crunch during the Busan concerts by securing alternative lodging and expanding transport options.

As of Tuesday, more than 2,000 paid and free alternative accommodations had been arranged using university dormitories, religious facilities and public institution training centers. Late-night screenings at movie theaters near the concert venue are also being considered to help spread accommodation demand.

Busan's public transit hours will be extended and service frequency increased, with additional late-night express bus routes between Greater Seoul and Busan also planned. Train and intercity bus services linking Busan with surrounding areas will be expanded as well.