Hong Nam-ki: "Real Estate Transaction Analysis Institute to be Established Within Government... Continuous Market Supervision, Crackdown, and Punishment" (Update)

The 5th Real Estate Market Inspection Meeting of Relevant Ministers Held on the 2nd

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (far right), is delivering opening remarks while presiding over the "5th Real Estate Market Inspection Meeting of Related Ministers" held on the 2nd at the Government Seoul Office in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 2nd that a Real Estate Transaction Analysis Agency (tentative name) will be established as a government organization to continuously monitor the real estate market and crack down on illegal activities and impose penalties.

On the same day, Deputy Prime Minister Hong presided over the 5th Real Estate Market Inspection Meeting of Related Ministers and said in his opening remarks, "We will create a permanent organization that continuously monitors the market, detects and exposes illegal activities, and swiftly cracks down and punishes them."

The Real Estate Transaction Analysis Agency is a more concrete form of the previously mentioned 'Real Estate Supervisory Organization' by the government, reorganizing and expanding the illegal activity response team. Specialized personnel will be dispatched from the Ministry of Land, Infrastructure and Transport, Financial Supervisory Service, National Tax Service, Prosecutor's Office, and Police, and the function to analyze abnormal transactions such as financial information will be strengthened. The government plans to promote legislation of related laws including these details.

Regarding the functions and authority of the Real Estate Transaction Analysis Agency, Deputy Prime Minister Hong explained, "In designing it, we actively referred to cases such as the Financial Intelligence Unit (FIU) and the Capital Market Investigation Team as a government organization established within the government, not an independent supervisory organization established outside the government."

The government plans to announce next week the locations and schedules for the pre-sale of 30,000 housing units in the 3rd New Town, including Taereung CC. Deputy Prime Minister Hong said, "The expectation of having a home that can be moved into within a few years after winning the subscription reduces housing anxiety for actual demanders and alleviates sales demand, calming market instability. We plan to finalize and announce the pre-sale locations and schedules for the 30,000 units in 2021, including Taereung CC, at the related ministers' meeting next week so that actual demanders can feel the expansion of housing supply and make housing plans as soon as possible."

Deputy Prime Minister Hong also announced that regarding recently significantly reduced rental business operators, the government and local governments will jointly inspect registered operators for violations of public obligations over four months from September to December this year. The target is registered rental housing held by housing rental business operators as of July, and the inspection will cover compliance with rental obligation periods, rent increase restrictions (within 5%), and lease contract reporting. He emphasized, "Operators who violate public obligations will face measures such as fines, deregistration, and recovery of tax benefits."

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