With the Busan Fireworks Festival scheduled for November, price gouging is already rampant at accommodations with views of Gwangalli Beach. Especially for so-called "prime" rooms with the best views of the fireworks, the nightly rate easily exceeds 1 million won, leading to a series of complaints from consumers.

According to a recent report by Busan MBC, Mr. A, a person in his 20s living in Seoul, booked accommodation in front of Gwangalli Beach for 650,000 won to watch the Busan Fireworks Festival.

However, the next day after the payment, an absurd situation occurred.

The lodging company notified, "We confirmed that the date overlaps with the Fireworks Festival" and "You cannot check in unless you pay an additional 1,350,000 won". As a result, the one-night accommodation fee became a whopping 2,000,000 won.

In an interview with the media, Mr. A said, "It was so absurd that I kept asking, 'How much?'" and "But they said the Fireworks Festival date had changed, so they could not provide a room on the date I reserved".

Not only this hotel but also nearby hotels are reportedly selling rooms for over 1 million won per night on the day of the fireworks festival.

Netizens expressed critical reactions such as "Jeju's overcharging wasn't even overcharging," and "Jeju was generous."

The controversy over price gouging during the fireworks festival is nothing new. Last year as well, not only accommodations in the Gwangalli area but also cafes, restaurants, and bars along the beach simultaneously raised their prices, sparking controversy. At the time, some cafes divided window seats into R, S, and A sections, allowed only high-priced menu orders, and charged a seat fee of 100,000 to 150,000 won. Some bars charged up to 800,000 won per table as a seat fee.

Image generated by AI. Not related to the article content. Adobe Express.

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Even when business owners drastically raise prices for events like the fireworks festival, there is currently no legal basis for authorities to crack down. This is because prices are set autonomously by the market, so the government cannot intervene. However, if the business owner fails to notify customers of a price increase in advance, or demands a higher fee after a reservation has already been made, administrative agencies can take action based on the Public Health Control Act.

View of Gwangalli Beach. The photo is not related to any specific expression in the article. Getty Images

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In response to this situation, the city of Busan announced on July 17 that Mayor Park Hyungjun will personally conduct on-site inspections to address price gouging, safety, and hygiene at summer tourist destinations. To enhance convenience for tourists during July and August, the city will operate a "Tourism Monitoring Inspection Team" in cooperation with district and county offices. The city also plans to strengthen training for tourism industry workers?including those in lodging, food service, and taxis?on hospitality, hygiene management, and customer service manuals. In addition, by promoting businesses with fair prices, the city will support price stability during the holiday season and guide self-employed business owners to voluntarily comply with fair pricing.