Pohang City Closes Down 8 Illegal Urban Guesthouses in First Half of Year... Administrative Sanctions Imposed

The city of Pohang, North Gyeongsang Province, has imposed administrative sanctions, including business suspensions, on eight illegal urban guesthouses found operating without lodging registrations. These establishments were caught through reports to the government’s e-People portal and independent on-site inspections, and were penalized for offering accommodation to locals, exceeding their registered business scope.

The sanctions were based on evidence including online reviews from sharing economy platforms like Airbnb, reservation records, and statements from the business owners. Confirmed violators faced penalties such as business suspension or fines.

Under the current Tourism Promotion Act, foreign tourist urban guesthouses are businesses where residents in urban areas provide lodging and meals exclusively to foreign tourists using their own homes. While Seoul and Busan permit accommodation for locals on a limited basis, it is prohibited in all other regions.

Pohang City plans to continue its rigorous inspections of illegal business practices to establish a sound tourism and accommodation culture.