The return of K-pop juggernaut BTS is fueling an economic boom in local commercial districts, but it has also triggered a wave of price gouging, with hotel rates soaring tenfold and guests reporting forced cancellations.
Local governments say they plan to crack down on such practices, but critics argue they lack effective tools to impose real sanctions.
‘BTS effect’ drives hotel booking frenzy
After the group’s 2026 world tour schedule was announced, accommodations in Goyang (Gyeonggi Province), Busan and Seoul — the confirmed Korean stops — sold out almost instantly.
Major hotels near the stadium in Goyang are already fully booked for the concert dates of April 9, 11 and 12. According to industry sources Tuesday, rooms at Sono Calm — 826 rooms, 730,000 won ($500) per night — and the Gloucester Hotel — 422 rooms, 600,000 won per night — are fully booked. Smaller lodgings are also filling up fast as inquiries flood in.
Local businesses are celebrating the BTS effect.
“The local commercial district, which struggled after the pandemic, is vibrant again,” said Na Do-eun, a representative for small businesses in Goyang. “We hope our city will be reborn as a global performance hub through this BTS event.”
In Busan, where concerts are set for June 12 and 13, the accommodation sector is also seeing an unprecedented rush.
“Mid-June is usually the offseason, but we’ve had a sudden flood of reservations,” said a hotel official in Dongnae District. “Our remaining 100 rooms were fully booked immediately after the BTS concert news broke.”
The frenzy extends across the city. A hotel in Seomyeon said all 650 rooms have already been sold out for the concert period. A hotel in Gwangalli even broke its usual protocol of opening reservations in three-month blocks, releasing its schedule early to meet surging demand.
In Seoul, reservation inquiries are pouring in at hotels near Gwanghwamun Square following news of a potential performance in late Ma, as the Korea Heritage Service gave conditional approval for an outdoor show at the square.
ARMY fans aren’t waiting for final confirmation. Weekend reservations for late March at major five-star hotels in the area have closed, with demand spilling over into nearby Euljiro and Myeong-dong.
“Many customers are already talking about the BTS performance,” said Park Eun-ho, 55, who runs a restaurant near Gwanghwamun. “In the past, when World Cup street cheering or concerts were held, many foreigners visited and sales jumped about 20 percent. We expect a big influx of foreigners for this BTS concert as well.”
Fans face tenfold price hikes and forced cancellations
As concertgoers flood the area, local officials are scrambling to curb rampant price gouging. In Busan, authorities have found accommodations raising rates more than 10 times the standard price.
The Busan Metropolitan Government said it is investigating about 70 complaints, ranging from price gouging to forced cancellations — owners unilaterally canceling existing bookings to resell rooms at higher rates. This mirrors the controversy surrounding the boy band’s 2022 concert in the city, when motel rooms that normally cost 100,000 won skyrocketed to over 1 million won.
“We will prevent unfair transactions by conducting joint on-site inspections with district offices and accepting online reports,” said Busan Mayor Park Heong-joon.
Similar issues are plaguing Goyang, which will host the tour’s opening shows in April. Some accommodations have even blocked off the concert dates as unavailable to prevent early bookings, likely a tactic to reopen them later at inflated rates.
“If we verify price gouging or forced cancellations, we will impose strict sanctions, ranging from fines to downgrading hotel star ratings,” a Goyang city official warned.
However, critics argue that cracking down on price gouging is impractical as a supply crunch collides with a massive surge in tourists. Authorities admit, to some extent, their hands are tied.
“It’s legally very difficult to prove a specific price is unfair,” a Busan official said. “Even if we catch them, the penalties are often limited to fines, which lack real deterrent power.”
BTS will release their new album “Arirang” on March 20, marking the first full-group comeback after all members completed their military service, before kicking off their world tour, which spans 79 shows in 34 cities.
