Gyeonggi-do Cracks Down on 102 'Brokers and Illegal Resellers' Disrupting the Housing Market

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered a large number of brokers and illegal applicants who obtained undue profits and disrupted the real estate market by deceiving severely disabled people unfamiliar with the subscription system, getting them to win special supply for the disabled, and then reselling the pre-sale rights.

Gyeonggi Province announced on the 19th that from September 1 last year to January 31 this year, through intelligence, tips, and investigation requests from police stations and city/county offices, it conducted investigations into fraudulent applications for special supply for the disabled, illegal resale of pre-sale rights, excessive brokerage fees, and unqualified/unregistered brokerage activities. As a result, 102 people including subscription brokers, licensed real estate agents, and illegal resellers were caught, of whom 48 were sent to the prosecution and 54 were criminally charged.

Among the major cases uncovered, real estate speculation broker Mr. A requested the head of a disabled association in Bucheon to introduce group members and received six severely disabled people. Mr. A then had them apply for the special supply for the disabled at C Apartment in Uijeongbu City. After they won, he sold the apartment pre-sale rights through a street vendor for a premium of 12 million KRW each. He paid 10 million KRW each to the six disabled people as compensation. In this process, the head of the disabled association in Bucheon pocketed 6 million KRW from the disabled people as a brokerage fee.

The Gyeonggi Province Fair Special Judicial Police Unit sent all eight people involved in the fraudulent subscription, including broker Mr. A who gained an undue profit of 12 million KRW, the head of the disabled association in Bucheon, and the winners, to the prosecution.

Also, Mr. E, a winner of D Apartment in Seongnam who had no intention of actually residing there, signed the supply contract and on the same day wrote documents securing rights at a street vendor near the apartment sales office, receiving a premium of 20 million KRW, then resold the apartment pre-sale rights. Illegal resale broker Mr. F received an undue brokerage fee of 4 million KRW. Subsequently, buyer Mr. G requested broker Mr. H to mediate resale of the apartment pre-sale rights within the resale restriction period, and Mr. H resold it after receiving a premium of 90 million KRW from the final buyer. Broker Mr. H, who arranged the illegal resale, received an undue brokerage fee of 12 million KRW.

Many brokers who received brokerage fees exceeding the legal limit or operated without qualification or registration were also caught.

Licensed real estate agent Mr. I, when a redevelopment district union member in Suwon requested brokerage for an apartment pre-sale right, explained the development prospects of the apartment and presented an expected premium price. Subsequently, the sale contract was made at the premium price suggested by Mr. I, who charged a brokerage fee of 1.48 million KRW and additionally charged 1.52 million KRW as consulting fees without prior explanation, receiving a total of 3 million KRW, which is 200% of the legal brokerage fee.

Licensed real estate agent Mr. J, who moved from outside to Namyangju City, recruited local resident Mr. K as a brokerage assistant without reporting him and provided a workspace including a desk and computer in the office. In this real estate office, Mr. J secured brokerage properties using local connections and directly performed substantial brokerage and mediation activities such as confirming and explaining the brokerage objects during real estate transactions, while Mr. K merely signed and sealed contracts, sharing brokerage fees 50% each.

Under the current system, brokers, illegal resellers, and intermediaries involved in unregistered brokerage activities, fraudulent subscriptions, and illegal resale face imprisonment of up to three years or fines up to 30 million KRW, and the relevant pre-sale rights may be canceled.

Furthermore, licensed real estate agents who receive brokerage fees exceeding the legal limit or allow others to conduct brokerage activities under their name face imprisonment of up to one year or fines up to 10 million KRW.

Kim Young-soo, head of the Gyeonggi Province Fair Special Judicial Police Unit, said, "We will mobilize all our capabilities to ensure that brokers and unqualified real estate agents who disrupt the housing market can no longer take root in Gyeonggi Province," and emphasized, "To establish a fair real estate transaction order, this year we plan to expand the scope of investigations to include fraudulent apartment applicants through disguised address changes, illegal permit holders in land transaction permission zones, and even price manipulation activities."

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