South Korea will introduce stricter penalties for overcharging in the accommodation and restaurant sectors starting next month, as part of a broader push by the government to promote tourism. The Ministry of Finance and Economy said the Cabinet has approved revisions to the Enforcement Decree of the Tourism Promotion Act, with the changes set to take effect on August 4.
Under the new rules, operators of “hanok” stays—traditional Korean houses—who fail to post or comply with required price lists will face a five-day business suspension for a first offense, replacing the earlier practice of issuing only a warning. Foreign tourist home-stay businesses in urban areas, which previously were not required to post or follow price lists, will now be subject to the same regulation.
The revision builds on similar measures already applied to general accommodation businesses in mid-July. Penalties escalate with repeat violations: a second breach will result in a 10-day suspension and a third in a 20-day suspension, both increased from the previous seven-day and 15-day penalties.
Stricter penalties will also apply to taxi drivers who overcharge passengers. A first violation will now result in an immediate 30-day license suspension, compared to the current warning-only policy. A second violation will lead to a 60-day suspension, while a third will result in permanent license revocation.
The finance ministry said these measures reflect the government’s ongoing commitment to curbing unfair practices in the tourism sector and improving the overall visitor experience as international arrivals continue to grow.
Officials added that further reforms are being considered, including penalties for businesses that unilaterally cancel reservations without valid justification, signaling continued regulatory tightening across Korea’s tourism and hospitality industry.