The move came after Chinese tourists filed a complaint to South Korean authorities, saying their group booked the tour via the agency in February but were then coerced into shopping, Yonhap News Agency reported citing a source from the Ministry of Culture, Sports and Tourism.
This was the first time that the South Korean government has suspended a travel agency for such violations, Korea Times reported.
In recent years, many Chinese tourists have been lured to buy extremely low tour packages but have then been pressed by their tour guides to buy overpriced products such as cosmetics, nutritional supplements, and duty-free items.
China became the largest source of visitors to South Korea in the first quarter with 1.01 million arrivals.