Seoul City plans to form a public fund to compensate foreign travelers overcharged by stores and taxi drivers beginning as early as June, city officials said Tuesday.

The city government is studying detailed rules including the amount, criteria and method of payment.

The city is considering raising funds of 200 million won ($183,000) to 300 million won in cooperation with tourism organizations.

Mayor Park Won-soon recently directed city officials to come up with measures to prevent rip-off practices prevalent in the city.

Meanwhile, anyone who reports overcharging of foreigners by taxi drivers through hotline number 120, an information service for Seoul life and tourism, will receive a reward of up to 500,000 won from late this month.

By Kim Young-won (wone0102@heraldcorp.com)