In principle, lodging businesses such as officetels and houses are not allowed.
Damage to the existing lodging industry… increasing complaints from nearby residents
There are also voices calling for legalization, “a reversal of the sharing economy era.”
Interest in the shared lodging industry is growing as suspicions arose that former President Moon Jae-in’s daughter Da-hye had been running an illegal lodging business in Seoul as well as in Jeju. It is difficult to get recognition for the shared accommodation business in the city, but the shared accommodation market is growing.
Recently, the Yeongdeungpo Police Station has booked and investigated Mr. Moon following an investigation request from Yeongdeungpo-gu and a complaint from a civic group. Mr. Moon is accused of using an officetel as an illegal lodging business (violation of the Public Health Management Act). Previously, suspicions were raised that a lodging business was conducted without reporting at a house owned by Mr. Moon in Hallim-eup, Jeju City, and Jeju City requested an investigation from the police.
Former President Moon Jae-in’s daughter Moon Da-hye, who is suspected of drunk driving, is returning home after completing an investigation into the suspect at Yongsan Police Station in Yongsan-gu, Seoul on the 18th. News 1
In order to operate a shared accommodation under the current law, you must be able to register as one of the accommodation businesses specified in the following: △accommodation facility under the Public Sanitation Management Act, △urban bed and breakfast business for foreign tourists under the Tourism Promotion Act, △hanok experience business under the Tourism Promotion Act, and △rural bed and breakfast business under the Rural Community Development Act. . Accordingly, in accordance with the Public Health Management Act, lodging businesses cannot, in principle, be operated in officetels, apartments, and houses.
In addition, the use of single-family homes, multi-family homes, and townhouses that can be used as urban lodging businesses for foreign tourists must be limited to foreigners. The Public Health Act stipulates that operating a lodging business without reporting will result in imprisonment of up to 2 years or a fine of up to 20 million won.
When shared accommodations are allowed indiscriminately in the city center, nearby residents sometimes complain. This is because the noise and trash problems caused by tourists coming and going are serious. Some are concerned that the tourism and lodging industry will be greatly threatened by an oversupply of lodging, and also point out the possibility of it being abused for sexual crimes.
A single-family home owned by former President Moon Jae-in’s daughter, Moon Da-hye, in Hyeopjae-ri, Hallim-eup, Jeju-si, Jeju-do on the 23rd. This place was surrounded by suspicions that Mr. Moon operated it as an illegal lodging establishment. Jeju = News 1
In fact, in October last year, an incident occurred in which a man in his 30s offered his apartment in Namyangju, Gyeonggi Province, to a woman in her 20s through an accommodation sharing platform, and then attempted to rape her by threatening her with a weapon. The man was sentenced to 10 years in prison last month.
There are also voices calling for strengthening management and supervision of the already-growing shared accommodation market by bringing it within legal boundaries. According to data submitted by the National Tax Service to the office of Rep. Cha Gyu-geun of the Cho Kuk Innovation Party, the amount of income from shared lodging was calculated to be 22.361 billion won in 2022. This is a 160.6% increase compared to the previous year (8.579 billion won), and 2020 (2.119 billion won) Compared to , it has increased by more than 10 times. With illegal businesses rampant, the damage that occurs when using them is Consumers will wear it in its entirety. In the case of illegal shared lodging establishments, there is a risk of being exposed to safety accidents and hygiene problems as fire safety facilities are not properly equipped, and even if tourists suffer damage, they may not receive appropriate compensation.
Previous attempts were made to expand the shared accommodation market. In March 2021, Rep. Yoo Jeong-ju of the Democratic Party of Korea proposed the ‘Tourism Promotion Act Partial Amendment Bill’, which aimed to expand the target of urban lodging services from foreigners to domestic and foreign citizens. The intention was to establish a legal basis for shared lodging by limiting the number of business days for Koreans to less than 180 days per year and stipulating safety standards and other compliance requirements, but it was scrapped at the end of the term without any progress in discussion in the 20th National Assembly.
Reporter Ahn Kyung-jun eyewhere@segye.com
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