"Pay More or Cancel"... Overcharging Controversy on Accommodation Fees Continues Ahead of 'Psy Hmphok Show'

Local Accommodation Prices Rise 2-3 Times
Not Fixed Pricing, Hotels Set Rates Independently

Some lodging businesses aiming to capitalize on the influx of visitors ahead of 'PSY's Hmphbok Show 2023' taking place in Iksan on August 5 are causing controversy with their price gouging tactics.

According to accommodation booking apps on the 22nd, lodging fees in the Iksan area have uniformly increased around August 5, the day of the Hmphbok Show performance.

Last year, Jamsil Stadium bustling with Psy's 'Hmph Show' attendees
[Photo by Yonhap News]

According to a report by JoongAng Ilbo, the one-night stay fee (for two people) at lodging facilities in Iksan on the day of the performance has surged 2 to 3 times higher than usual, ranging from 120,000 to 180,000 KRW. Accommodation fees in nearby Jeonju and Gunsan areas have also risen accordingly.

Normally, a weekend motel double room costs between 30,000 and 80,000 KRW per night, but on August 5, the price has increased by about 2 to 3 times compared to the previous weekend. Moreover, some guests who have already booked and paid are being asked by lodging operators to pay more or cancel their reservations, citing incorrect pricing, leading to absurd situations.

Lodging Fee Increase Cannot Be Legally Sanctioned Unless It Is Collusion

Every time local festivals or concerts by famous singers take place, controversies over inflated food and accommodation prices persist.
[Photo by Asia Economy]

The problem is that unless it is collusion, this cannot be legally sanctioned. Lodging fees are not regulated by fixed pricing but are left to the discretion of the business operators, and the judgment of whether the fees are reasonable is left to consumers.

An official from Iksan City stated, "It is a blind spot that temporarily raising lodging fees is not legally problematic," adding, "Since each business makes different decisions, we cannot enforce regulations, but we will encourage self-regulation through meetings with organizations such as the Iksan branch of the Korea Lodging Business Association and continue related guidance and promotional activities."

With an expected crowd of about 30,000 people nationwide on the day of PSY's concert, Iksan City plans to conduct joint inspections with relevant departments and the police targeting local lodging businesses until the end of August. These inspections will include guidance on prohibiting price gouging, customer service training, and room hygiene checks. Minor violations found will be immediately corrected on-site, and serious cases will face administrative actions.

Meanwhile, controversies over price gouging on food and lodging fees persist whenever local festivals or concerts by famous singers are held. When news of BTS's '2030 Busan World Expo Bid Concert' broke on October 15 last year, lodging fees in the Busan area skyrocketed. The usual 60,000 KRW lodging fee was set as high as 615,000 KRW.

In response, some local governments have introduced systems to limit lodging fee increases. For example, Donghae City in Gangwon Province introduced the 'Price Peak System' in 2009, the first of its kind nationwide, to eradicate price gouging during the peak vacation season by limiting lodging fees to a maximum of twice the normal rate. On average, 66 lodging businesses participate annually.

This content was produced with the assistance of AI translation services.