Gyeonggi-do Cracks Down on 1,571 Real Estate False Reporters with Heavy Penalties...742 Million KRW in Fines

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 1,571 real estate false reporters and imposed fines totaling 742 million KRW. Additionally, 45 real estate transactions suspected of tax evasion were reported to the National Tax Service.

Gyeonggi Province announced on the 9th that from October 28 to December 20 of last year, it conducted a special investigation into 4,115 suspected cases of false real estate reporting across 31 cities and counties in the province, identifying 1,571 false reporters and imposing fines amounting to 742 million KRW.

The investigation targeted 1,648 cases suspected of false reporting of actual transaction prices, 146 cases suspected of falsely reporting funding plans while trading houses worth over 300 million KRW in speculative overheated districts, and 2,321 cases suspected of false contract dates in land transaction permission zones.

During the investigation, the province identified 3 individuals who made double contracts known as 'down contracts' by listing prices lower than the actual transaction price on contracts to reduce capital gains tax, and 1,568 individuals who falsely reported delayed reports, contract dates, or failed to submit documents.

Fines of 137 million KRW were imposed on the 3 individuals who made down contracts, and 650 million KRW on the remaining 1,568 individuals.

One notable case involved Mr. A, residing in Namyangju, who traded a building located in Saneung-ri, Namyangju City, with buyer Mr. B. After the land transaction permission zone was designated, they received the deposit and drafted the contract, but falsely reported the contract date as before the designation when filing the actual transaction report.

Currently, Mr. A and Mr. B are under investigation for violating the Real Estate Transaction Reporting Act. Whether they will be prosecuted will be decided based on the investigation results.

Mr. C, residing in Yongin, sold forest land and roads located in Cheoin-gu to six buyers including Mr. D. Although the actual transaction amount was about 2.7 billion KRW, they drafted a down contract reporting the transaction amount as 1.7 billion KRW.

It was revealed that a written agreement was made stating that the seller would be responsible for all issues arising from the down contract. Due to voluntary reporting by the buyers, a fine of about 130 million KRW was imposed on Mr. C.

The province is currently conducting additional investigations on 1,337 other cases beyond those detected. Fines will be imposed as results come out, and cases suspected of tax evasion will be reported to the National Tax Service.

Kim Joon-tae, Director of the Urban Housing Office of the province, stated, "This year, we plan to conduct special investigations into suspected false real estate transaction reports to establish a fair and transparent transaction order," adding, "We will also actively promote legal amendments such as the reduction of the reporting period from 60 days to 30 days."

This content was produced with the assistance of AI translation services.