BTS’ RM, South Korea President Lee call out Busan lodging price hikes
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(From left) Jungkook, Jin, Jimin, RM, J-Hope, V and Suga of BTS will hold concerts in Busan on June 12 and 13.
PHOTO: AFP
SEOUL – South Korean President Lee Jae Myung has called for stronger action against accommodation price gouging in Busan ahead of BTS’ June concerts, as soaring room rates and alleged reservation cancellations continue to draw criticism from fans and the public.
The issue drew fresh attention after BTS members – RM, Jin, Suga, J-Hope, Jimin, V and Jungkook – addressed the controversy during a live stream on fan platform Weverse on May 27.
RM, the group’s leader, asked businesses in Busan dialect not to “overdo it”, referring to reports of sharp hotel price hikes, and expressed disappointment that he had no authority to intervene directly.
“There has been a lot of news about accommodation problems in Busan,” said RM, 31. “Even if we want to solve it ourselves, there’s only so much we can do. Of course, prices can change depending on peak seasons, but I hope we can keep things reasonable.”
Busan native Jimin, 30, also voiced displeasure, saying he hopes “fans leave Busan with only good memories when they visit”.
Accommodation prices in Busan began rising sharply after BTS announced its world tour schedule in January, including concerts in the city on June 12 and 13. Some reports said room rates jumped more than 10-fold amid expectations of surging demand.
A joint investigation by the Korea Consumer Agency and the Fair Trade Commission found that the average one-night accommodation price in Busan during the BTS concert weekend reached 433,999 won (S$369), about 2.4 times higher than that on surrounding weekends. Motel prices showed the steepest rise, averaging 325,801 won – about 3.3 times the usual rate.
Many customers said accommodations had urged them to cancel existing reservations or pay additional fees, while others said their bookings were cancelled unilaterally. The complaints triggered criticism from both global fans and the Korean public.
Busan city officials and related authorities have sought to respond to the complaints, but their efforts have so far had limited effect.
The authorities have cracked down on cases in which accommodations charged prices different from those posted online or at reception desks. They have also carried out campaigns urging businesses to maintain reasonable rates during the peak season.
Officials from Busan and the Ministry of Culture, Sports and Tourism previously told The Korea Herald that the authorities lack a legal basis to cap room rates or force accommodations to maintain certain prices, leaving them with limited tools beyond inspections, campaigns and voluntary cooperation from businesses.
Instead, the city government, religious groups and universities have opened facilities at relatively low prices or free of charge. Beomeosa, a local Buddhist temple, offered free lodging and meals for 20 visitors attending the concert.
Some accommodations, including hotels such as Paradise Hotel Busan and Fairfield by Marriott Busan Songdo Beach, have also joined campaigns pledging to keep cancelled rooms at their original rates, rather than rebooking them at sharply higher prices.
As the controversy continued, Mr Lee strongly criticised the price hikes on May 28 and suggested stronger penalties for accommodations that charge excessively high rates or unilaterally cancel reservations.
He said price gouging, which has repeatedly surfaced around festivals and concerts in other parts of South Korea, could undermine Busan’s potential as a tourism destination.
“Even in the case of Busan, people are talking about boycotting local businesses and refusing to spend money there because some tried to profit excessively from the BTS concert by sharply raising accommodation prices,” Mr Lee said.
“It harms the entire community. It may even be necessary to publicly disclose the names of those businesses.”
The government has announced a package of measures aimed at preventing similar problems around major events. The measures include requiring accommodations to voluntarily set seasonal price caps in advance to prevent sudden hikes after major events are announced.
The government also plans to ban arbitrary reservation cancellations aimed at the rebooking of rooms at higher rates and to impose liability for related consumer damages.
However, because the measures require a legal basis through legislation, they are unlikely to take effect in time for the BTS concerts in June. THE KOREA HERALD/ASIA NEWS NETWORK