Jeong Ran-su, adjunct professor at Hanyang University's Department of Tourism
Jeong Ran-su, adjunct professor at Hanyang University's Department of Tourism

"We should consider pilot exemptions that ease home-sharing regulations, starting with designated tourism zones."

Jeong Ran-su, an adjunct professor at Hanyang University's Department of Tourism, recently proposed a phased approach centered on tourism zones as the right direction for reforming home-sharing regulation. The goal is to limit the side effects of across-the-board deregulation by first loosening restrictions in areas where friction with existing residential neighborhoods can be kept to a minimum.

"In places like Hongdae and Itaewon, many former residential areas have already been converted en masse into shops, cafes, cultural venues and other tourist-oriented facilities," Jeong said. "Removing the barriers to home-sharing within those tourism zones first, and running a pilot there, is the most realistic alternative."

Jeong also warned of the consequences of excessive regulation, noting that tighter rules sharply reduce the supply of accommodation and ultimately push up costs for tourists.

Rooftop pool at Hotel Indigo in New York [Provided by New York City]
Rooftop pool at Hotel Indigo in New York [Provided by New York City]

New York City offers a cautionary example. In 2022, the city enacted Local Law 18, a strict short-term rental registration ordinance. As a result, the number of listed Airbnb properties collapsed from about 22,000 in August 2023 to 6,841 within a month — a drop of roughly two-thirds. In the 18 months after the law took effect, total hotel sales in New York surged from $2.1 billion to $2.9 billion, and hotel prices rose 7 percent year-on-year in 2024.

"After New York tightened its home-sharing rules, hotel occupancy rates and average room rates rose sharply," Jeong said. "If the current trend continues in Seoul, we could start hearing people say they simply cannot afford to stay overnight in the city — which is why an active discussion on home-sharing is urgently needed."

Yet progress on reforming home-sharing policy has been slow. Experts point to a closed structure in which stakeholders never sit down together as the main reason discussions have stalled. They say it is urgent to establish a formal consultative body that brings together the traditional accommodation industry, home-sharing platforms, local governments and residents.

"Reaching 30 million international tourists is impossible without realistically addressing the accommodation supply problem," Jeong said. "We need to listen comprehensively to the various complaints from the field and the positions of existing industry players, and then work toward an institutional consensus step by step."


terry@heraldcorp.com