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Accommodation price gouging before BTS Busan concerts draws scrutiny

Accommodation price gouging before BTS Busan concerts draws scrutiny

Authorities found room prices in Busan surged several times higher ahead of BTS concerts, prompting an investigation and criticism from President Lee Jae-myung.

As BTS prepares to perform in Busan over two nights, the excitement surrounding the concerts has been overshadowed by mounting complaints about accommodation price gouging in the host city. Authorities have stepped in to examine how much room rates rose as fans flocked to the area.

Fans have been arriving not only from across Asia but from much further afield. Many have struggled to find places to stay, yet have travelled to Busan anyway, with some making the trip even without securing tickets to the sold-out shows.

An investigation by the Fair Trade Commission and the Korea Consumer Agency examined around 135 lodgings in the area. They found that the average price of rooms during the BTS concert dates was about four times higher than on surrounding weekends, with motels showing the steepest increases at roughly 3.3 times their normal rates.

In some accommodations, prices reached as much as five times the usual level. According to the findings, rooms that would normally go for around 100,000 won were in some cases listed for up to 750,000 won during the concert period.

Investigators also pointed to the conduct of some operators, not just the prices. Certain establishments demanded additional payments from guests who had already confirmed their bookings, while others cancelled reservations that had been made weeks or months in advance, only to relist the same rooms at far higher rates.

The backlash reached the highest level of government. President Lee Jae-myung repeatedly drew attention to the practice on social media and visited Busan in person, saying the city's image was being damaged by accommodation price gouging and that the problem needed to be fixed. He warned that rudeness, price hikes and discrimination are among the biggest obstacles to tourism, noting that a single viral video can undo a destination's reputation in an instant.

Following the president's criticism, city authorities applied pressure and around 22 to 25 accommodation providers ultimately lowered their prices. A grassroots response also emerged, with local temples, churches, university dormitories and public institutions opening their doors to visiting fans for free or at very low cost.

Sources

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