Gwangju City Reports Tax Evasion Evidence by Outsiders to National Tax Service

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 10th that it has reported 521 cases of suspected tax evasion, including down transactions of pre-sale rights and illegal gifts, to the Gwangju Regional Tax Office based on real estate transaction data involving non-residents.

To stabilize the real estate market shaken by the rapid rise in apartment prices, Gwangju City has been conducting joint inspections with autonomous districts targeting brokerage offices with many non-resident buyers since the 11th of last month, and has conducted a detailed investigation of real estate transaction data from June 1 to the 25th of last month.

As a result, among 5,723 cases purchased by non-residents, 104 cases suspected of down transactions of pre-sale rights and 417 cases suspected of illegal gifts were detected.

The suspected down transaction cases of pre-sale rights showed an average price difference of more than 50 million KRW compared to the Sarangbang Real Estate listing prices. The transaction regions were Seoul 10, Gyeonggi 3, Incheon 3, Chungcheong 9, Busan 3, Jeonnam 62, Jeonbuk 13, and Jeju 1.

The suspected illegal gift cases involved individuals under 30 acquiring houses worth more than 100 million KRW. By region, these were Seoul 61, Gyeonggi 47, Gangwon 5, Incheon 9, Chungcheong area 30, Jeonnam 189, Jeonbuk 23, Gyeongsang area 50, and Jeju 3.

Among these, six cases involved minors acquiring houses worth more than 100 million KRW, and 11 cases involved both down transactions of pre-sale rights and illegal gifts.

Overall, non-resident purchases were concentrated mainly on new apartment pre-sale rights, and it was confirmed that apartments over 30 years old with individual official land prices below 100 million KRW in areas such as Bongseon-dong were also heavily purchased.

Additionally, inspections of 85 brokerage offices conducted jointly by Gwangju City and autonomous districts uncovered 71 violations.

Looking at major suspicious cases, a minor identified as A purchased two buildings for 150 million KRW but is suspected to have received gifts from parents due to insufficient income capacity.

B, who lives in Seoul, purchased a pre-sale right for a new apartment of 84.97㎡ for 440 million KRW, but the average market price in November according to Sarangbang Real Estate was 550 million KRW, indicating a down transaction with a price difference of about 110 million KRW.

The detected violations include 3 cases of delayed real transaction reporting, 7 cases of missing power of attorney, 2 cases of failure to keep sales contracts, 9 cases of discrepancies between real transactions and contracts, and 37 cases of missing information in brokerage object confirmation and explanation documents.

Administrative actions such as business suspension for up to six months and fines of up to 5 million KRW will be imposed on the detected cases.

Gwangju City will continue joint inspections of illegal real estate transactions and detailed investigations of suspicious real estate transactions with autonomous districts until the end of the year, and will also conduct additional investigations into those who omitted other income from real estate transaction cancellation reports.

Lee Sang-bae, Director of the Urban Regeneration Bureau of the city, said, “The rapid rise in housing prices due to speculation deepens polarization and causes serious social problems by taking away the dreams of homeownership from ordinary citizens without homes. We will continue to enforce strict crackdowns to prevent real estate speculation forces from gaining a foothold in our city.”

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