Punishment for Encouraging False Subscription to Reduce Unsold Units

Yoo Dong-su, Democratic Party of Korea lawmaker

[Asia Economy Reporter Lee Chun-hee] Measures to punish those who encourage false housing subscription to reduce unsold housing are being promoted.

On the 21st, Yoo Dong-su, a member of the Democratic Party of Korea, announced that he has introduced a partial amendment bill to the 'Housing Act' to establish punishment regulations for those who encourage false housing subscriptions or apply for housing supply in exchange for money or goods.

The current Housing Act defines illegal transfer or acquisition of the right to receive housing as an act that disrupts the supply order, punishable by imprisonment for up to three years or a fine of up to 30 million won.

However, recently, in areas where unsold housing is increasing, private construction companies have been recruiting university students and others to falsely induce housing subscription applications to inflate sales performance. It is unclear whether this can be considered an act that disrupts the supply order, so proper punishment has not been enforced.

The proposed amendment includes provisions to punish those who provide economic benefits to housing subscription savings account holders in exchange for applying for housing subscriptions to promote housing sales, or those subscription holders who receive economic benefits and apply for housing supply.

Representative Yoo said, "We expect this amendment to contribute to establishing order in housing supply," adding, "Since housing is one of the essential needs for people's living, we will closely monitor whether there are unfair practices in the market more strictly."

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