Gyeonggi-do to Conduct Special Investigation on Real Estate False Transactions Until Year-End

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is launching a special investigation into false real estate transaction reports.

Gyeonggi Province announced on the 1st that from this month until the end of December, it will conduct a joint special investigation with cities and counties across the province into suspected false or fraudulent real estate transaction price reports and illegal brokerage activities.

The investigation targets cases suspected of false reporting among real estate transaction reports in the area, such as tax evasion, exaggeration or understatement of transaction prices to increase mortgage loan limits, and false transaction reports where the highest price is reported without monetary exchange and then canceled to manipulate real estate market prices, as well as cases raised through complaints or media reports.

Details of the sources of funds listed in financing plans for housing transactions in speculative overheating districts and regulated areas are also subject to investigation.

In particular, transactions involving minors acquiring homes worth over 300 million KRW, individuals under 30 purchasing high-priced homes exceeding 900 million KRW, and transactions conducted without loans but through other borrowings will be closely examined.

The province also plans to refer cases suspected of involving unqualified persons or illegal acts by licensed real estate agents in direct transactions reported without brokers to the Gyeonggi Province Special Judicial Police for investigation and prosecution.

The investigation will begin by requesting related explanatory materials from the transaction parties, and if the submitted materials are insufficient or not provided, attendance for questioning will be required.

Even if explanatory materials are submitted, cases showing significant discrepancies from market prices or strong suspicion of tax evasion such as capital gains tax or gift tax will be reported to the relevant National Tax Service office.

Those who submit false explanatory materials or false reports may face fines up to 30 million KRW, and those who falsely report transaction prices or other details will be fined 5% of the real estate acquisition price and subjected to tax audits for suspected capital gains or gift tax evasion.

Earlier this year, through a special investigation, the province detected violations in real estate transaction reports by 83 individuals, imposed fines totaling approximately 590 million KRW, and requested tax audits from the National Tax Service for 155 cases involving tax evasion.

The province will pay rewards up to 10 million KRW to those who report illegal real estate transactions. Eligible reports include false reporting of real estate transaction prices and false reports without monetary transactions, and can be submitted to the real estate management department of the city, county, or district where the property is located.

Hong Ji-seon, Director of the Gyeonggi Province Urban Housing Office, stated, "Through a strong investigation into illegal real estate transactions, we will establish a fair real estate transaction order and realize tax justice," adding, "We plan to reduce fines for voluntary reporters."

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