For years, international tourists seeking an authentic Korean stay at traditional hanok guesthouses or urban homestays faced an unpredictable gamble: transparent pricing or hidden markups. That ambiguity is coming to an abrupt end.

Cabinet passed a key revision to the Enforcement Decree of the Tourism Promotion Act Tuesday, taking a hard-line stance against price-gouging across the country's hospitality sector. Effective Aug. 4, guesthouses and traditional stay operators caught overcharging or failing to post official rate sheets will face an immediate five-day operational suspension on their first offense.

Under previous rules, traditional hanok guesthouses caught inflating prices received little more than a gentle corrective warning for initial infractions, while urban homestays catering to foreign visitors slipped through a regulatory loop with no requirements to post prices at all. The new measure closes these loopholes, turning what used to be a slap on the wrist into a business-halting penalty.

The crackdown forms a key pillar of the government’s broader campaign to eliminate price-gouging and protect consumer trust amid surging international tourism. It expands upon similar strict penalties recently enacted for general hotels and inns, with parallel enforcement measures for taxis and restaurants currently undergoing regulatory review.

Government officials emphasized that safeguarding foreign visitors from unfair markups is essential to maintaining Korea's reputation as a top-tier global travel destination. Beyond mandatory rate disclosures, authorities plan to introduce a "Price Safety System," allowing hotels to preregister seasonal rate ceilings with local municipalities to guarantee price transparency year-round.

"Fair pricing is fundamental to building lasting trust with travelers," officials noted in a joint inter-ministerial statement following the Cabinet meeting. "By removing first-offense leeway for price gouging, we are establishing a clear market standard that protects consumers and preserves the integrity of our tourism industry."

This article was published with the assistance of generative AI and edited by The Korea Times.