Two Brokers Arrested for Illegal Brokerage of Subscription Savings Accounts...Strict Crackdown on Real Estate Order Disruptors

Failure to Appear on the Day of the Substantial Hearing for Housing Act Violation Warrant, Fled to Gimpo and Others for 2 Years
Relentless Pursuit of Real Estate Order Disruption Activities

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government's Civil Affairs Judicial Police Unit announced on the 29th that it has arrested and detained two brokers who illegally solicited subscription savings accounts, which are prohibited from being traded, to investors.

The two suspects, including the ringleader Mr. A, who was caught while on the run, were previously caught in June 2019 by the Seoul Civil Affairs Police for illegally brokering 13 subscription savings accounts. Fearing detention on the day of the warrant hearing for violating the Housing Act, they did not appear in court and fled.

At the hideout in Gimpo where Mr. A and others were apprehended, they were living with their grown children. The entire family had moved their resident registrations to a third location that was not their actual residence, used vehicles registered under other people's names, and conducted thorough evasion activities, causing confusion in the investigation. However, the Civil Affairs Police, in cooperation with the prosecution and after a stakeout, succeeded in capturing them.

They posted flyers reading "We buy subscription savings and deposits" on utility poles across various locations in Seoul to recruit subscription accounts. They connected sellers with buyers and collected brokerage fees of several million won per case from the buyers as referral fees, revealing themselves as the main perpetrators of illegal subscription savings account trading.

Trading subscription savings accounts is punishable for the transferor, transferee, broker, and even those who advertise it. Under the Housing Act, offenders face up to three years in prison or fines up to 30 million won. Furthermore, if a subscription is won using a traded subscription savings account and the fact is discovered, the housing supply contract may be canceled, and subscription eligibility can be restricted for up to 10 years.

Park Byung-hyun, head of the Civil Affairs Investigation Division 2 of the Civil Affairs Judicial Police Unit, stated, "We will firmly strengthen investigations against all acts that reduce houses from living spaces to speculative tools," adding, "Until housing prices stabilize, we plan to relentlessly pursue and investigate real estate speculation offenders who disrupt the housing supply order."

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