Gyeonggi-do Launches Special Investigation into Illegal Real Estate Transactions Across 31 Areas

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will conduct a joint special investigation with city and county governments into suspected false real estate transaction reports and illegal brokerage activities across the province until June 19.

The investigation targets real estate transaction reports in the area suspected of false reporting such as up/down contracts, or transactions flagged through complaints or media reports.

This investigation is conducted in accordance with the recently amended "Enforcement Decree of the Real Estate Transaction Reporting Act," reflecting the expanded areas requiring submission of funding plans and strengthened reporting items.

Additionally, transactions involving houses priced over 300 million KRW in speculative overheating zones and regulated areas, and houses over 600 million KRW in non-regulated areas are included in the investigation.

In particular, the investigation will thoroughly examine funding details with objective evidence for cases such as ▲minors acquiring houses over 300 million KRW ▲persons under 30 purchasing high-priced houses exceeding 900 million KRW ▲transactions conducted without loans but with other borrowings, to strengthen checks on abnormal transactions and illegal activities, thoroughly block speculative demand, and manage the housing market stably.

Furthermore, if illegal activities by unqualified persons or licensed real estate agents are suspected in direct transactions reported without brokers, the Gyeonggi Province Special Judicial Police Unit will be requested to investigate and take legal action.

The investigation will require related explanatory materials from the transaction parties, and if the materials are insufficient or not submitted, attendance for investigation will be enforced.

Even if explanatory materials are submitted, cases showing significant discrepancies from market prices or strong suspicion of tax evasion such as capital gains tax or gift tax will be reported to the competent National Tax Service.

False reporters of explanatory materials face fines up to 30 million KRW, and those who falsely report transaction prices or other matters will be fined 5% of the real estate acquisition price and subjected to tax audits for capital gains or gift tax evasion.

Last year’s second half special investigation uncovered 1,571 violations of real estate transaction reporting and imposed fines totaling over 700 million KRW.

Kim Jun-tae, Director of the Urban Housing Office of the province, explained, "In line with Governor Lee Jae-myung’s policy will emphasizing that unfair gains from illegal acts cannot be tolerated to establish real estate transaction order and realize a fair society, administrative efforts will focus on detecting false reporters," adding, "Those who voluntarily report false reporting will receive reduced fines."

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