President Lee Says Raising Lodging Prices Can Become a Nuisance for the Whole Neighborhood, Takes Aim at Busan BTS Price-Gouging Controversy

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\r\n[Financial News] President Lee Jae-myung strongly criticized controversy over alleged lodging price gouging tied to a BTS concert scheduled in Busan on the 27th, saying, "Trying to charge a little more for lodging can end up becoming a nuisance for the whole neighborhood."
At a briefing on preparations for the 48th Session of the UNESCO World Heritage Committee held in Haeundae District, Busan, Lee raised the issue while discussing large-scale international events and efforts to attract tourists.
Lee said Busan has strong potential to develop its tourism industry, but added that "the biggest obstacles to tourism are rudeness, price gouging and, in a sense, discrimination."
He went on to say, "If talk of lodging price gouging comes up again when we host large-scale events in the future, it will badly damage Busan's image," and urged officials to "prepare and respond well."
In particular, he addressed reports that some lodging businesses had raised prices and canceled reservations ahead of the BTS concert. "Isn't there even a movement saying not to buy anything or spend money in Busan?" he asked. "How damaging is that?" He added, "Trying to get a little more for lodging and causing trouble for everyone is a nuisance for the whole neighborhood. It would be good to publicly release the names of such businesses."
Lee stressed that simple peak-season price increases should be distinguished from cases in which reservations are canceled and then resold at much higher prices.
He said, "What makes people angry is not that the price is high," adding, "They get angry because they made a reservation, only to have it canceled and then see it sold to someone else at a higher price."
He continued, "Charging several times more than usual from the start can be anticipated and accepted," but noted that "the problem is when a room booked for 100,000 won is canceled for some strange reason and then sold to someone else for 1 million won."
Lee said, "Such cases should be subject to very strong sanctions," and called for measures to prevent a repeat.
The Busan Metropolitan City Government reported that complaints have been raised over lodging price increases and unilateral reservation cancellations related to the BTS concert, and said it is promoting the opening of public lodging facilities and a fair lodging campaign. It also said it is conducting intensive inspections of related businesses jointly with the National Tax Service (NTS) and the Korea Fair Trade Commission (KFTC).
Lee said, "If we successfully host even one international event, it will greatly help regional economic growth and also raise the country's standing," and urged thorough preparations for a successful World Heritage Committee meeting.
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west@fnnews.com Sung Seok-woo Reporter