Incheon, South Korea – A group of motel operators in Incheon's Jung-gu district have been fined by the Fair Trade Commission (FTC) for engaging in price-fixing and imposing additional fees on amenities.
According to the FTC, six accommodation businesses near Sinpo Station colluded to set minimum prices for their rooms and introduce charges for amenities such as toothbrushes and facial cleansers. The cartel agreement, reached in September 2023, established a floor price of 40,000 won (approximately US$30) for weekday stays and 60,000 won (approximately US$45) for weekend stays.
The cartel's actions directly led to a price increase of between 2,000 and 6,000 won per room on average. In November 2023, the group further agreed to charge 1,000 won for amenities that were previously provided for free.
The FTC found that the cartel's activities had stifled competition within the local accommodation market and harmed consumers. The commission has issued a cease-and-desist order to the six businesses involved.
"[Quote from FTC official about the negative impact of cartels on consumers and the importance of fair competition]," said [Name], [Title] at the Fair Trade Commission.
The FTC's investigation into the motel cartel highlights the ongoing challenges faced by regulators in ensuring fair market practices across various industries.
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