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In a vigorous effort to clean up the tourism environment and protect national security, the South Korean government has officially enacted significant amendments to the Tourism Promotion Act. This move not only aims to eliminate low-quality, cheap tours but also places a heavy responsibility on travel companies to manage tour groups and prevent tourists from abusing tourist visas to abscond and reside illegally.
According to the latest information released on May 9, 2026, by the South Korean Ministry of Culture, Sports and Tourism, the National Assembly has approved a strict legal roadmap to reform the travel industry. The focus of this revised law is directly on "designated travel agencies"—entities that play a crucial role in receiving large-scale international tour groups from countries with bilateral agreements. For many years, the image of South Korean tourism has been significantly affected by the "zero-cost" tour model. These are sophisticated "tourist traps" where travel agencies offer services at unbelievably low prices, then recoup their profits by coercing tourists into shopping at designated locations.
South Korea tightens regulations on travel companies.
The newly enacted revised law has established a clear "red line": an absolute ban on all forms of coercive shopping. In particular, South Korean authorities will closely monitor the commissions that travel companies receive from shopping outlets. Using these commissions to pay tour guides – a loophole that previously allowed them to heavily pressure tourists – will be considered a serious violation of the law. Businesses that deliberately ignore the regulations may face penalties such as suspension of operations for up to six months, or even permanent revocation of their licenses, completely eliminating them from the mainstream tourism market.
Alongside improving service quality, security and residency management issues have also been raised to the highest alert level. One of the most noteworthy aspects of this law is the regulation concerning the legal responsibility of travel companies for tourists who abscond from their tours to work illegally. The reality of tourists "disappearing" immediately after entering the country to become illegal workers has become a major problem for Seoul authorities. Under the new regulations, travel companies can no longer be held blameless when their customers leave their tours illegally. Authorities will assess the rate of absconding and the specific reasons to apply strict administrative penalties.
South Korean Minister of Culture, Sports and Tourism, Chae Hwi-young, affirmed that this revision of the law is a golden opportunity to re-establish market order, aiming to build a high-quality and sustainable group tourism ecosystem. The South Korean government is sending a strong message: the Land of the Morning Calm is ready to welcome tourists from all over the world, but these journeys must be based on respect for the law and authentic cultural experiences, rather than schemes involving illegal labor or cheap commercialization. To ensure enforcement, an inter-agency coordination mechanism between the Ministry of Culture and security and judicial agencies has also been established to closely monitor all market developments.
South Korea's new policy focuses on enhancing the experience of traditional culture.
These drastic changes are taking place against the backdrop of South Korea's tourism industry experiencing a miraculous recovery after the pandemic. In March 2016 alone, the number of international visitors to the country exceeded 2 million, a 26.7% increase compared to the same period the previous year. Even more astonishing, this figure far surpassed pre-pandemic levels, reaching 133.2% compared to March 2019. The allure of the Hallyu wave continues to be a powerful magnet, especially with the official return of the legendary group BTS after a four-year hiatus, creating a global sensation that drew millions of fans to the capital city of Seoul.
Analysis of data from the Korea Tourism Organization shows that mainland China remains the largest source market with over half a million visitors, followed by Japan and Taiwan. Notably, Vietnam has affirmed its position as one of the most promising markets with 75,000 visitors in just one month, placing it among the fastest-growing countries. However, along with this rapid growth in numbers, the management pressure on Vietnamese and international travel businesses will also increase significantly. New regulations expected to take effect in the next six months will force travel companies to completely change their strategies, from customer profile screening to local tour monitoring procedures.
