Yeosu-si Launches Major Crackdown on Illegal Sales Suspicions at Ungcheon Gold Class

Suspicions Raised Over Systematic Subscription Rate Inflation Through Pyramid Scheme Operations to 'Seek Capital Gains'
From Now On, Residential-Style Lodging Facilities Cannot Be Used for Residential Purposes

[Asia Economy Honam Reporting Headquarters Reporter Shim Kyung-taek] The Woongcheon Gold Class The Marina, a residential lodging facility in Yeosu, Jeonnam, is under suspicion of artificially inflating subscription rates by systematically mobilizing outsiders using a so-called 'pyramid scheme,' prompting Yeosu City to launch a large-scale crackdown.

According to Yeosu City and others, Woongcheon Gold Class, which has been conducting subscription schedules since the 7th, is suspected of encouraging resale-oriented sales targeting outsiders to inflate subscription rates and seek speculative profits.

In particular, there are even allegations that the sales company is operating an organized pyramid structure to boost subscription rates.

Yeosu City has formed a special crackdown team consisting of the real estate management team, related departments, police station, tax office, and brokerage association, and has been conducting inspections at the Woongcheon Gold Class The Marina sales site, a residential lodging facility, since the 7th in accordance with the real estate illegal activity intensive crackdown manual.

On the 9th, the city conducted an on-site investigation at the Woongcheon Gold Class sales office, and from the 10th, it plans to set up a tent on-site and remain there until the last day of sales to prevent illegal activities.

A Yeosu City real estate management team official stated, “We plan to actively respond to suspicions of numerous illegal activities aimed at speculative profits, such as organized resale-oriented subscriptions by outsiders and illegal subscription promotions in pyramid forms.”

Meanwhile, the government is promoting amendments to the Enforcement Decree of the Building Sales Act to inform that residential lodging facilities cannot be used for residential purposes and to require submission of a confirmation letter.

The legislative and administrative notice period for this amendment to the subordinate laws of the Building Act is from May 4, 2021, to June 14, 2021, and after consultation with related ministries, it is scheduled to be promulgated and enforced around September.

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