Government Launches Intensive Real Transaction Investigation...Crackdown on 'House Price Collusion and Illegal Gift Transfers'

Detailed Investigation of Apartment Complexes with Sharp Price Increases in Changwon, Cheonan, Paju, Ulsan, Busan, Daegu, etc.
Joint Inspection Team of 100 Members to Operate from the 18th
Investigation of Housing Price Collusion... Possible Prosecution if Confirmed

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The government has launched a high-intensity real estate transaction investigation focusing on newly designated adjustment target areas such as Changwon, Cheonan, Jeonju, Paju, Ulsan, Busan, Gwangju, and Daegu.

The Ministry of Land, Infrastructure and Transport announced on the 17th, "Along with the designation of adjustment target areas, we have started high-intensity real transaction investigations and on-site crackdowns on brokerage offices in major overheated areas."

The investigation areas include major apartment complexes located in key overheated regions such as Changwon, Cheonan, Jeonju, Paju, Ulsan, Busan, Gwangju, and Daegu. The government plans to focus the investigation on complexes where real transaction prices have rapidly increased or transaction volumes have surged within a short period.

The investigation will be conducted from this month until March next year, with the possibility of extension if necessary. A detailed investigation will focus on suspected speculative housing purchases by non-residents, suspicious transactions involving minors through illicit gifting, and suspected up/down contract transactions.

After reviewing source of funds and proof of financing documents, if violations of the Real Estate Transaction Reporting Act are confirmed, the relevant local governments will be notified to impose fines, and if tax evasion such as illicit gifting is suspected, the National Tax Service will be informed.

If suspected misuse of loans for purposes other than intended or illicit loans is found, the Financial Services Commission and the Financial Supervisory Service will be notified, and cases suspected of real estate crimes such as name-trust agreements will be reported to the relevant police agencies or investigated directly.

Additionally, from the 18th, the Ministry of Land and local governments plan to operate a 'Joint Real Estate Market Inspection Team' consisting of about 100 members. The Ministry's Illegal Activity Response Team includes 15 personnel, along with about 80 officials from each city/province and city/county/district.

The joint inspection team will crack down on activities disrupting real estate transaction order such as price collusion and illegal brokerage, focusing on brokerage offices in major overheated areas. The inspection period is from the 18th until January 15 next year.

Licensed real estate agents found to have violated laws may face administrative sanctions such as license cancellation, suspension, or business suspension. In particular, if price collusion is detected, they will be reported to investigative agencies and may face criminal penalties.

Meanwhile, the government newly designated Uichang-gu in Changwon as a speculative overheated district and grouped a total of 36 areas including 9 places in Busan, 7 in Daegu, 5 in Gwangju, 2 in Ulsan, and Paju, Cheonan, Jeonju, Changwon, and Pohang as adjustment target areas.

Areas where housing prices are stabilizing, such as Eulwang, Nambuk, Deokgyo, and Muui-dong in Jung-gu, Incheon, Baekseok-eup, Nam, Gwangjeok, and Eunhyeon-myeon in Yangju, and Miyang, Daedeok, Yangseong, Gosam, Bogae, Seoun, Geumgwang, Juksan, and Samjuk-myeon in Anseong, have been removed from the adjustment target areas.

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