South Korea is set to increase penalties for overcharging in the tourism industry. On Tuesday, the Ministry of Economy and Finance announced that, to boost tourism development, the government plans to implement stricter punishments for overcharging practices in the accommodation and food service sectors starting next month.
The Ministry stated that the cabinet has approved revisions to the enforcement regulations of the Tourism Promotion Act, aimed at imposing harsher penalties on overcharging tourists. The amendments will take effect on August 4th.
Under the revised rules, operators of traditional "Hanok" accommodation services who fail to display or comply with price lists will face a five-day business suspension for their first violation, rather than just receiving a warning. Previously, homestay businesses for foreign tourists in urban areas were not required to publish or adhere to price lists; they will now be included under the revised regulations.
The South Korean government had previously implemented similar revisions for the general accommodation industry in mid-July. In addition to business suspensions for first-time offenses, second and third violations will result in 10-day and 20-day suspensions, respectively, an increase from the previous penalties of 7 and 15 days.
Taxi drivers who overcharge passengers will now have their licenses immediately revoked for 30 days, a change from the current rule which only issues a warning for a first offense. A second violation will lead to a 60-day license revocation, and a third offense will result in disqualification from operating.
The Ministry of Finance also indicated that the government will continue efforts to combat unfair practices in the tourism industry, including imposing penalties on operators who cancel reservations unilaterally without justifiable cause.
Comments