Gyeonggi-do, Joint City-County Special Investigation on Suspected False Real Estate Transaction Reports

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will conduct a joint special investigation with city and county governments from next month until November into suspected false reports of actual real estate transaction prices and illegal real estate brokerage activities.

The investigation targets transactions suspected of false reporting such as up/down contracts among real estate transaction reports in the relevant area, or transactions where suspicions of false reporting have been raised through complaints or media reports.

In particular, the funding details will be investigated for ▲ housing transactions of 300 million KRW or more in speculative overheating districts and regulated areas, and 600 million KRW or more in non-regulated areas ▲ minors acquiring houses worth 300 million KRW or more ▲ persons under 30 years old purchasing high-priced houses exceeding 900 million KRW ▲ transactions conducted without loans but with other borrowings.

Also, if it is judged that unqualified persons or illegal acts by licensed real estate agents were involved in direct transactions reported without brokers, the Gyeonggi Province Special Judicial Police will be requested to investigate.

The investigation will be conducted by receiving related explanatory materials from the transaction parties, and if the explanatory materials are insufficient or not submitted, attendance investigations will be carried out.

If the explanatory materials significantly differ from market prices or if there is a strong suspicion of tax evasion such as capital gains tax or gift tax, the relevant National Tax Service will be notified.

Those who falsely report explanatory materials will be fined 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 will be subject to tax audits for suspected evasion of capital gains tax or gift tax.

Through a special investigation in the first half of this year, the province detected violations of real estate transaction reporting by 48 people and imposed fines totaling about 340 million KRW.

Hong Ji-seon, Director of the Urban Housing Office of the province, explained, "Under the policy stance that unfair gains from illegal real estate activities cannot be tolerated to realize a fair society, administrative efforts will be focused on detecting false reporters," adding, "We plan to reduce fines for voluntary reporters."

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