Gyeonggi-do Arrests 43 for Illegal Real Estate Speculation in Yongin Semiconductor Cluster

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered 43 illegal actors who engaged in real estate speculation by illegally obtaining land transaction permits through false address registration and name trust related to the Yongin SK Hynix semiconductor cluster project site.

Gyeonggi Province announced on the 17th that since December last year, it has conducted a planned investigation into violations such as fraudulent permits, name trusts, and use for purposes other than intended during the land transaction permit process in the SK Hynix semiconductor cluster project area in Cheoin-gu, Yongin City, resulting in the arrest of 43 illegal actors, all of whom were referred to the prosecution.

The total speculation amount from their illegal activities reached 19.8 billion KRW. Among them, a planned real estate company in the form of an agricultural corporation aiming for short-term real estate price gains earned 2.8 billion KRW in price differences.

To obtain sales permission in a land transaction permit zone, conditions such as a mandatory land use period, direct farming, and direct residence are required. However, these speculators committed illegal acts including ▲illegal speculation by planned real estate companies in the form of agricultural corporations ▲obtaining permits through fraudulent methods such as false address registration ▲illegal acquisition of land transaction permits through name trusts ▲illegal brokerage activities without registration or qualifications.

In a major case, Representative A of a planned real estate company in the form of an agricultural corporation purchased 11 plots (16,018㎡) in the land transaction permit zone in April 2019 for 2.86 billion KRW, then subdivided 5 of these plots into 20 using false sales contracts. Representative A falsely promoted through a YouTuber that housing or retail store construction was possible, selling the land within 1 to 8 months for 5.02 billion KRW, making a price difference profit of 2.16 billion KRW.

When buyers who could not obtain land transaction permits requested contract cancellations, Representative A paid 20 million KRW to Mr. B, a staff member of a law firm, to register seven buyers as false residents under the names of Mr. B’s family members for houses and farmland. The seven buyers who acquired land through this false address registration, name trust, and entrusted management were referred to the prosecution for illegal acts.

It was confirmed that Representative A had no intention of using the land for agricultural management but submitted a false agricultural management plan to obtain a farmland acquisition qualification certificate.

Meanwhile, Mr. C, residing in Cheonan, registered a false address in a vinyl greenhouse installed on farmland in February 2019 to meet residence conditions for land transaction permits, then did not use the farmland for the permitted purpose but entrusted its management.

Similarly, 29 false address registrants within the land transaction permit zone obtained permits through fraudulent means for 34 plots worth approximately 12.7 billion KRW for speculation purposes and were all referred to the prosecution.

Illegal acquisition of land transaction permits through name trusts was also uncovered.

Mr. D, residing in Suwon, unable to meet residence requirements within the land transaction permit zone in April 2019, borrowed the name of a brokerage assistant at the brokerage office handling the property to obtain the land transaction permit.

YouTuber Mr. E was found to have received 116 million KRW in brokerage fees by conducting unregistered brokerage services to Representative A and other clients without registering the brokerage office with the competent authority.

According to current laws on real estate transaction reporting, those who obtain permits through fraudulent means within land transaction permit zones face imprisonment of up to two years or fines up to 30% of the land price based on the individual publicly announced land price at the time of contract. If fraudulent permits are confirmed, the permits are canceled.

Kim Young-soo, head of the Provincial Fair Special Judicial Police Unit, stated, "This is the first case nationwide where the special judicial police caught illegal speculators within a land transaction permit zone, contributing to establishing a sound and transparent real estate transaction order," adding, "We will continue to strictly strengthen investigations to prevent market disruption in advance and establish a sound market order centered on actual demand."

Meanwhile, the Provincial Fair Special Judicial Police Unit is conducting a high-intensity planned investigation into illegal real estate speculation by foreigners and corporations within land transaction permit zones using false contracts or false address registrations, with results to be announced at the end of the year.

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