[Gangnam Perspective] K-culture and Price Gouging

Recently, a case of hotel price gouging in Busan Metropolitan City has become a major topic on social networking service (SNS). Room rates surged after BTS announced that it would hold concerts in Busan Metropolitan City on June 12–13. Once the concert dates were made public, BTS fans around the world, known as Adorable Representative M.C. for Youth (ARMY), began searching for accommodation in Busan Metropolitan City.
Hotels then moved in lockstep to raise their prices. Rooms that normally cost around 90,000 won shot up to 900,000 won, and the most expensive listings were set as high as 4 million won. Some hotels even asked guests who had already booked to cancel their reservations, which sparked outrage among fans on SNS. This tactic is less a natural price adjustment based on supply and demand and more akin to a get‐rich‐quick business that deceives consumers.
This is not the first time such an incident has occurred in Busan Metropolitan City. During the 2022 BTS Yet To Come in Busan concert, held in support of the World Expo 2030 Busan, Korea bid, accommodation prices also rose by up to 30 times. Yet the same problem is recurring without any effective, lasting remedies. At that time as well, the Busan Metropolitan City Government belatedly tried to contain the situation by operating a complaint center and conducting joint inspections. It was only four years ago, but the same issue is repeating itself. In response, fans shared a workaround strategy: stay overnight in nearby cities such as Gimhae, Changwon, and Ulsan Metropolitan City and then travel by public transportation. This year’s BTS concerts are especially meaningful because all members have completed their military service and are returning as a full lineup for the first time in four years. The Busan Metropolitan City concerts are even more special because they coincide with June 13, the group’s debut date, and take place in the hometown of Jimin of BTS and Jung Kook.
President Lee Jae Myung has hinted at a strong response, declaring that "such vicious abuses must be eradicated at the root," and the Busan Metropolitan City Government has announced a QR code–based reporting system for price gouging and joint inspections. This is a welcome, if belated, move. However, in practice, such measures alone are unlikely to directly control the level of room rates themselves.
The biggest obstacle is the legal limit. The Price Stabilization Act, the Framework Act on Consumers, and the Monopoly Regulation and Fair Trade Act (MRFTA) all lack clear standards to directly sanction increases in accommodation prices. Because the lodging industry operates under a free-pricing system, businesses are allowed to set rates as they wish. In the end, what the central and local governments can realistically crack down on is not the price itself but unfair practices. For now, the best they can do is target conduct such as false advertising, canceling reservations and then reselling rooms, double pricing, and the use of unfair contract terms.
Similar cases are common overseas. During the 2024 Summer Olympics in Paris, accommodation costs rose two to four times, and in the United States of America (U.S.), hotel rates during the Super Bowl can jump five to ten times. Yet these situations did not trigger the same level of controversy as in Busan Metropolitan City. Why is that?
Unlike many other countries, South Korea has very limited public lodging and alternative accommodation infrastructure. As a result, even if prices rise by the same multiple, the burden feels much heavier. When mid- and low-priced options all spike at once and choices disappear, the sense of having "nowhere to go" becomes overwhelming. This is why South Korea needs to learn from overseas examples. First, there is the model of using public accommodation as a buffer. In Germany and the United Kingdom of Great Britain and Northern Ireland (UK), university dormitories, public training centers, and local government housing facilities are temporarily opened during major events. The mere existence of such alternatives helps curb sharp price hikes in the private lodging market.
Second, authorities can secure a portion of rooms at fixed prices in advance. Japan and France, ahead of the Olympics, signed agreements with major hotels to secure a certain number of rooms at fixed rates. This does not control the entire market, but it absorbs essential demand in advance. Mega-events like BTS concerts generate enormous ripple effects for local economies. According to an analysis by the Korea Culture & Tourism Institute, the 2022 Busan performance alone produced an economic impact of about 37.2 billion won.
The global popularity of K-culture is rising. As fans from around the world come to South Korea to experience Korean Wave content firsthand, short-term profit-seeking through price gouging could actually undermine the sustainable growth of the Korean Wave. It is time to consider how South Korea can develop into a mecca for the Korean Wave where fans from all over the world feel safe and welcome to visit.
pompom@fnnews.com Jung Myung-jin, culture and sports desk editor Reporter