Gyeonggi-do Requests Investigation into 45 Cases of Illegal Activities by Planned Real Estate Agents

[Asia Economy (Suwon) = Reporter Lee Young-gyu] #1 Mr. A, in his 80s, residing in Suwon, Gyeonggi-do, was solicited for land investment by Mr. B, an employee of a planned real estate corporation. Mr. B claimed that the price of a forest land in Namyang-eup, Hwaseong-si would increase several times in 2-3 years due to urban development, and Mr. A purchased 3 parcels (827㎡) for 180 million KRW. However, Mr. A later found out that the purchase price was six times higher than the official land price and also heard from Hwaseong City Hall that it would be difficult to lift the development restrictions on the land.

#2 Mr. C, in his 50s, living in Pyeongtaek, Gyeonggi-do, was pressured to achieve sales performance by the planned real estate corporation where he worked. Based on favorable conditions such as railroads and industrial complexes provided by the company, he acquired forest land in Suji-gu, Yongin-si, and Namjong-myeon, Gwangju-si, and recommended the "good land" to acquaintances for resale. However, the development news was false, and the company he worked for went out of business. Ultimately, Mr. C lost both his assets and the trust of his acquaintances.

Gyeonggi-do has requested police investigation into 45 cases of 'planned real estate illegal activities.'

Illegal activities in planned real estate involve buying land or forest land that is difficult to develop at low prices, then exaggerating advertisements as if large profits can be made to attract investors and sell at high prices.

Gyeonggi-do announced on the 1st that since December last year, it has received a total of 52 reports through the 'Planned Real Estate Illegal Activities Reporting Center,' and referred 45 of them to the Gyeonggi Southern and Northern Provincial Police Agency for investigation.

Earlier in December last year, the province signed a 'Business Agreement to Eradicate Planned Real Estate Illegal Activities' with the Gyeonggi Southern and Northern Provincial Police Agency.

After the agreement, the province has maintained close cooperation with the Gyeonggi Provincial Police Agency and operates the 'Planned Real Estate Illegal Activities Reporting Center.' Reports can be submitted up to the city and county level.

Hong Ji-seon, Director of the Provincial Urban Housing Office, said, "Illegal activities in planned real estate exploit the aspirations of ordinary people toward real estate to gain unfair profits," and added, "This year, we plan to invest 100 million KRW to develop a planned real estate transaction tracking system."

Last year, the province surveyed areas at risk of planned real estate speculation and designated 244.42㎢ as land transaction permission zones in four rounds. The province is also continuously proposing amendments to laws to fundamentally resolve illegal (evasive) activities of planned real estate.

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