"Booked for 650,000 won... Now 2 million to check in?" Price Gouging Returns in Gwangalli

'2 Million Won per Night' Price Gouging Already Hits Busan Fireworks Festival
Nearby Hotels Also Selling Rooms for Over 1 Million Won
"Jeju Was Much Better," Online Commenters Outraged

1 million, 2 million won per night...

With the Busan Fireworks Festival scheduled for November, price gouging is already rampant at accommodations overlooking Gwangalli Beach. As room rates for so-called "prime" rooms with the best views of the fireworks soar well above 1 million won per night, consumer complaints are mounting.

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According to a recent report by Busan MBC, a woman in her 20s living in Seoul, identified as Ms. A, booked a hotel in front of Gwangalli Beach to attend the Busan Fireworks Festival. The accommodation fee was 650,000 won. However, the day after her payment, something shocking happened. The hotel informed her that "the date coincides with the fireworks festival" and that she would not be allowed to stay unless she paid an additional 1.35 million won. As a result, the total cost for one night came to a staggering 2 million won.

In an interview with the media, Ms. A said, "I was so taken aback that I kept asking, 'How much?'" She added, "But they told me that since the fireworks festival date had changed, they could not provide the room on the date I had reserved."

This hotel is not the only one. Other nearby hotels are also reportedly charging over 1 million won per night on the day of the fireworks festival. In response, online commenters have criticized the situation, saying, "Jeju Island's price gouging was nothing compared to this," "Jeju was much better," "This is crazy, Busan is becoming just like Jeju," "Jeju's price gouging was cute in comparison," and "I can't go to Busan anymore."

The controversy over price gouging during the fireworks festival is not new. Last year, not only accommodations in the Gwangalli area but also cafes, restaurants, and bars along the beach all raised their prices at once, sparking controversy. At the time, some cafes divided window seats into R, S, and A sections, only allowed customers to order expensive menu items, and charged a seating fee of 100,000 to 150,000 won. Some bars even charged up to 800,000 won per table as a seating fee.

Even though business owners sharply raise prices during events like the fireworks festival, there is currently no legal basis for authorities to crack down on this practice. This is because prices are set freely by the market, and the government cannot intervene. However, if business owners do not notify customers of price increases in advance or demand higher prices after a reservation is made, administrative agencies can take action under the Public Health Control Act.

Amid this situation, on July 17, the Busan Metropolitan Government announced that Mayor Park Hyungjun would personally conduct on-site inspections to prevent price gouging, ensure safety, and maintain hygiene at summer tourist destinations. To improve convenience for tourists during July and August, the city will intensively operate a "tourism monitoring inspection team" together with district and county offices. The city plans to strengthen training for workers in the hospitality, food service, and taxi industries on hospitality, hygiene management, and customer service manuals, and to promote "good price" businesses in order to support price stability during the holiday season and encourage self-regulation among small business owners to adhere to fair pricing.