Government to Monitor All Real Estate Transactions: Establishment of 'Real Estate Transaction Analysis Institute'

[Asia Economy Reporter Yoo In-ho] The government has finalized plans to launch the controversial real estate supervision agency as early as this year.

Accordingly, a provisional 'Real Estate Transaction Analysis Institute' will be established as an organization directly under the Minister of Land, Infrastructure and Transport to monitor disruptive activities in the real estate market.

The institute will review individuals' financial and tax information during real estate transactions and investigate and punish suspicious transactions in cooperation with relevant agencies such as the prosecution, police, and National Tax Service.

However, concerns have been raised that if the government scrutinizes detailed personal information in ordinary real estate transactions, it could lead to constitutional issues due to excessive invasion of privacy.

On the 2nd, Hong Nam-ki, Deputy Prime Minister and Minister of Strategy and Finance, stated at the '5th Real Estate Market Inspection Ministers' Meeting' held at the Government Seoul Office in Sejong-ro, Seoul, that regarding the organizational plan for the real estate market supervision agency, "To block disruptive activities in the real estate market, we will expand and reorganize the Illegal Activity Response Team into the 'Real Estate Transaction Analysis Institute (provisional name)' to strengthen the function of analyzing abnormal transactions."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "5th Real Estate Market Inspection Meeting of Related Ministers" held on the 2nd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Deputy Prime Minister Hong added, "Although the Illegal Activity Response Team has achieved some results such as announcing the results of actual transaction investigations, there are practical limitations with a temporary organization of 13 members from 7 agencies. We are designing the functions and authority of the Real Estate Transaction Analysis Institute by referring to the Financial Intelligence Unit (FIU) and the Capital Market Investigation Team."

The newly established Real Estate Transaction Analysis Institute will expand the existing Illegal Activity Response Team and be installed as an organization directly under the Minister of Land, Infrastructure and Transport. Currently, the Illegal Activity Response Team is a temporary task force composed of 13 members from 7 agencies including the Ministry of Land, Infrastructure and Transport, prosecution, police, National Tax Service, and Financial Supervisory Service.

The size of the Real Estate Transaction Analysis Institute is expected to be about 80 to 100 members, referencing the FIU. The Ministry of Land, Infrastructure and Transport is discussing plans to staff it with senior officials at the level of deputy minister (director), 30 to 40 affiliated public officials, and the remainder being experts dispatched from the prosecution, police, National Tax Service, and others.

At the meeting, the government discussed the pre-sale plan for 30,000 houses in the 3rd new town, part of the real estate supply measures announced on the 4th of last month. The government had previously decided to increase the pre-sale volume for the 3rd new town from 9,000 houses to 60,000 houses during 2021-2022.

Deputy Prime Minister Hong said, "We will finalize and disclose the pre-sale sites and schedules for 30,000 houses in 2021 so that actual demanders can feel the expansion of housing supply and plan their housing as soon as possible."

Regarding the effect of the real estate measures, Deputy Prime Minister Hong emphasized, "Although the real estate market stabilization effect is appearing, we will strongly respond to speculative demand, illegal transactions, and all disruptive activities that disturb the supply and demand market."

Additionally, it was decided to conduct a joint inspection of registered rental business operators by the end of the year to check for violations of public obligations.

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