A South Korean accommodation manager has been referred to prosecution after allegedly tricking a guest into canceling a 90,000-won ($65) room reservation and reselling it for seven times the price ahead of a BTS hotel scam incident tied to a Busan concert.
If convicted, this case could mark the first time a lodging operator faces criminal punishment for falsely canceling existing bookings to reap massive profits from soaring event demand.
Deceptive Overbooking Claims Lead to 7x Price Hike
According to the Busan Metropolitan Police Agency’s Anti-Corruption and Economic Crime Investigation Unit, a manager identified as A was sent to the prosecution without detention on charges of fraud. In January, a customer booked a room through a mobile accommodation application for 90,000 won per night. However, after the city announced a major BTS concert scheduled for June, lodging prices skyrocketed.
About four months later in May, A contacted the customer and claimed that dozens of unexpected overbooking issues had occurred due to heavy app traffic, urging the customer to cancel the reservation. Despite the customer’s protests and complaints to the local tourism center, they ultimately accepted a refund. Shortly after, the exact same room was relisted and sold for 650,000 won.
Legal Battles Over ‘Property Advantage’ and Fair Pricing
Police applied fraud charges because A deliberately deceived the consumer to secure a financial advantage. Legal experts note that while deception is easily proven, the core legal debate will focus on whether the opportunity to re-rent the room at a higher rate legally constitutes a property advantage under criminal law.
In response to recurring price gouging controversies surrounding major events like BTS concerts and the Busan Fireworks Festival, local authorities have introduced countermeasures. The city launched an inspection of 157 accommodations near the Gwangandaegyo Bridge, revealing that rates surged by an average of 94.5% during festival dates, with some raising prices over 200%. To combat this, Busan has selected 34 fair-price lodging providers to encourage transparent rates and ease tourist burdens.
