President Lee Targets Price Gouging and Normalizes South Korea’s Economy

South Korean President Lee Jae-myung is taking decisive action to address price gouging in the tourism sector and is overseeing broader efforts to normalize the nation’s economy, moving from a “Korea Discount” to a “Korea Premium.” These initiatives come as South Korea anticipates a surge in tourism, particularly with the expected return of BTS, and as trade relations with key partners like Brazil strengthen.

Combating Tourism Sector Abuses

President Lee has directly addressed issues of price gouging, rudeness, and excessive touting within South Korea’s tourism industry, labeling these practices as “vicious abuses” that must be “uprooted.” Government-wide measures are being implemented to eradicate these problems, including mandatory price labeling and stricter penalties, such as business suspension for first-time offenders.

This crackdown is timed to coincide with an expected increase in foreign visitors, with tourism reaching a record 18.93 million in 2025. The government aims to shift the focus from simply increasing visitor numbers to improving the quality of the tourism experience, with a goal of attracting 30 million visitors by 2030.

Economic Normalization and Capital Market Reforms

President Lee emphasized the normalization of South Korea’s capital market, noting that assets previously undervalued under the “Korea Discount” are gradually improving. Recent legislative changes, such as the commercial law amendment mandating the cancellation of treasury stocks, are contributing to this trend. Further institutional reforms, including legislation to prevent stock price manipulation, are expected to accelerate this positive momentum.

The administration also aims to dismantle issues in the real estate market, with reports indicating a decline in housing prices and an increase in homes available for sale in the Seoul area, alongside a slowing rate of rental price increases. A key focus is shifting capital towards productive finance.

Strengthening International Trade and Partnerships

South Korea is actively strengthening its international trade relationships. A recent summit with Brazilian President Luiz Inacio Lula da Silva resulted in a series of agreements covering agriculture, business cooperation, and key minerals. Notably, a memorandum of understanding was signed to boost regulatory cooperation in the health sector, which is expected to improve access for Brazilian consumers to South Korean “K-beauty” products.

Annual trade between South Korea and Brazil has already exceeded $10 billion, and both countries have agreed to elevate their bilateral relationship to a strategic partnership.

Addressing Illegal Subsidies and Forest Fire Prevention

President Lee also addressed the issue of illegally obtained government subsidies, emphasizing the need for severe reprimands and the recovery of funds, along with economic sanctions. He stressed the importance of upholding the rule of law and deterring fraudulent activity.

the President highlighted the increased risk of forest fires due to drier weather conditions and urged vigilance to prevent outbreaks.