South Korea To Toughen Penalties For Overcharging In Tourism Sector

According to Yonhap, South Korea will impose tougher penalties for overcharging in the accommodation and restaurant sectors starting next month as part of efforts to promote tourism. The Cabinet approved revisions to the Enforcement Decree of the Tourism Promotion Act, and the changes will take effect Aug. 4, according to the Ministry of Finance and Economy.

Under the revised rules, operators of hanok stays that fail to post or follow price lists will face a five-day business suspension for a first violation, instead of a warning. Urban foreign tourist homestays, which were previously not required to post or comply with price lists, will also come under the new regulation. Second and third violations will bring 10-day and 20-day suspensions, up from seven days and 15 days.

Taxi drivers who overcharge passengers will receive a 30-day license suspension for a first offense, compared with a warning under the current rule. A second violation will lead to a 60-day suspension, while a third will result in license revocation. The government also plans to add penalties for operators that cancel reservations without valid grounds.