Gyeonggi-do Cracks Down on False Real Estate Reports... 350 Million KRW in Fines Imposed on 48 Individuals

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has imposed a total fine of 350 million KRW on dishonest traders who falsely reported lower prices during real estate transactions.

Gyeonggi Province announced on the 26th that it conducted a special investigation on 3,503 suspected cases of false real estate transaction reports in 31 cities and counties within the province from April to July, and identified 48 false reporters, imposing fines totaling 350 million KRW.

The province investigated 3,503 cases suspected of false reporting of actual transaction prices, including up/down contracts, false reporting of contract dates, sales between special relations (relatives), and cases where transaction amounts could not be verified. It also examined cases involving housing transactions over 300 million KRW where gift suspicions arose from the funding plan, requiring verification of the source of funds.

As a result, 48 individuals were caught: 3 who made "down contracts" (double contracts) by writing lower prices than the actual transaction price to reduce capital gains tax, 13 who made "up contracts" by reporting higher amounts than the actual transaction price, and 32 who delayed reporting, falsely reported contract dates, or failed to submit documents.

The province imposed fines of 56 million KRW on the 3 who made down contracts, 170 million KRW on the 13 who made up contracts, and 119 million KRW on the remaining 32 individuals.

Additionally, 155 cases where sellers and buyers were confirmed to be family or relatives or reported transactions at unreasonable prices compared to surrounding market prices were reported to the National Tax Service for tax evasion investigations. The cases were categorized as follows: 77 special relation sales, 14 suspicious transaction prices, 46 unverified transaction amounts, 14 property settlement cases, and 4 others.

The province also investigated unfair practices by licensed real estate agents and identified 15 cases including excessive brokerage fees and omission of property confirmation explanation documents. The involved agents are subject to criminal charges and administrative sanctions.

Among the major cases, seller A in Suwon City reported a land pre-sale right in Homaesil-dong sold to buyer C through agent B at the pre-sale price of 410 million KRW. The investigation revealed the actual transaction price was 520 million KRW, including a premium of 110 million KRW, resulting in a fine of 56 million KRW imposed on the seller, buyer, and agent.

Seller D in Gwangju City reported a transaction of a townhouse in Opo-eup with buyer E at 350 million KRW, but the actual transaction price was 310 million KRW, meaning the reported price was 40 million KRW higher. The province imposed a fine of 18.6 million KRW on both seller and buyer.

Besides these detected cases, the province is conducting additional investigations on 1,151 cases excluding 2,168 cases that were closed with no suspicion.

Hong Ji-seon, Director of the Urban Housing Office of the province, stated, "We plan to conduct special investigations on suspected false real estate transaction reports in the second half of the year to establish a fair and transparent transaction order."

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