Self-Employed Business Owners "Different from Raising Prices at Christmas" Heated Debate
Won Hee-ryong Angry at Motel Overcharging... "Proposes Countermeasures"
On the night of the 8th, when heavy rain poured down in Seoul, the road near Gangnam Station in Seoul was flooded. [Image source=Yonhap News]
[Asia Economy Reporter Han Seung-gon] "You have to do business by following the principles of commerce!" , "Your words are a bit too much."
On the 8th, when record-breaking heavy rain fell in the metropolitan area causing fatal accidents and disaster-like flood damage, public criticism grew against business owners who raised accommodation fees. Among self-employed people, a heated debate is ongoing over the so-called 'price gouging at motels during heavy rain.' The government announced it would come up with countermeasures.
On the 11th, a post titled "What do you think about business owners trying to profit from a natural disaster?" was uploaded on the self-employed community 'Apeunikka Sajangida' (Because It Hurts, I'm the Boss). As of 10 a.m. that day, about 50 comments had been posted, continuing the discussion.
One self-employed person said, "It's bitter, but prices are originally determined by supply and demand," while another owner lamented the current situation, saying, "This cannot apply in a disaster situation. How many more people have to die or get injured for people to stop thinking about business profits in such situations..."
Meanwhile, another small business owner expressed regret, saying, "Because of incidents like this, some people who only think about themselves cause all small business owners and self-employed people to be collectively judged and questioned why they should be helped." Another self-employed person responded, "That's right. Thinking about it, Christmas price hikes might be understandable, but suddenly raising motel fees due to a natural disaster means those without money probably got soaked in the rain and had to spend the night somewhere."
On the 9th, trash accumulated as merchants cleaned up their shops in the middle of Namseong Sagye Market in Dongjak-gu, Seoul, which suffered flooding damage due to heavy rain. [Image source=Yonhap News]
There are also differing opinions. One self-employed person said, "Saying we should keep normal prices or lower them because it's a disaster is too utopian," adding, "I also saw that screenshot (an image capture of a motel that raised prices) and thought, 'Wow, these merchants are really grinding their teeth,' but South Korea is clearly a capitalist society, and there are really many wealthy people here, and the place where those rich people gather is Gangnam land..."
Opinions among citizens who are not self-employed are also divided. Kim, a man in his 30s who works in an office, said, "Some people die from floods, and some people make money from floods. It's a bit unpleasant to see, but isn't this capitalism?" Another office worker in his 20s, Park, said, "(The motel price increase) seems a bit excessive," pointing out, "I might understand about 100,000 won, but 300,000 won is too much."
◆ Similar incidents occurred in China... Profiteering from disaster victims
Amid ongoing public outrage, China also faced criticism for raising accommodation prices during a disaster. According to Huanqiu Shibao on July 24 last year, Henan Province's Zhengzhou experienced unprecedented heavy rain from July 18, flooding nearby subway and public transportation facilities and causing about 3 million disaster victims.
During this situation, some accommodation business owners were found to have demanded outrageous prices and profited excessively. Especially on the day when the subway flooding incident caused 12 deaths and 8 missing persons, such profiteering targeted disaster victims seeking motels, which intensified public criticism.
The controversial accommodations were identified as the Xi'an Hotel High-Speed Rail Station branch near Zhengzhou Train Station, where subway flood victims were found dead. According to reports, these owners suddenly raised daily accommodation fees to 1,500 yuan (about 270,000 won), 1,688 yuan (about 300,000 won), and 2,888 yuan (about 520,000 won). Prices reportedly soared up to 10 times the usual rates after the flood occurred.
In response to such business tactics, the Zhengzhou Municipal Market Supervision Law Enforcement Department stated, "All reported facts have been confirmed," and imposed fines totaling 500,000 yuan (about 90 million won) on the controversial hotels under the 'Price Law of the People's Republic of China.'
An image of a lodging platform posted by Won Hee-ryong, Minister of Land, Infrastructure and Transport, on his Facebook on the afternoon of the 10th. Minister Won strongly criticized the business owners who excessively raised motel prices and announced plans to prepare related measures. [Image source=Yonhap News]
As controversy continues over raising accommodation costs during heavy rain, Land, Infrastructure and Transport Minister Won Hee-ryong posted two photos on his Facebook on the 10th showing motels charging 250,000 won and 300,000 won for one night on the 8th, expressing anger at "those who try to make money by exploiting others' difficulties." He emphasized, "I will actively propose countermeasures and compensation to relevant ministries."
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