Real Estate Agent Failing to Remove 'Clickbait Property Ads'... Fine Up to 5 Million KRW

Korea Real Estate Board Designated as Monitoring Task Outsourcing Agency

Real Transaction-Based Monitoring Procedure (Data Provided by the Ministry of Land, Infrastructure and Transport)

The government will strengthen online monitoring to eradicate false and exaggerated real estate advertisements online. Licensed real estate agents who fail to remove ads despite completed transactions and continue to mislead consumers will face fines of up to 5 million KRW. Additionally, advertising standards will be improved to require specifying the location and floor number for buildings other than residential houses.

On the 29th, the Ministry of Land, Infrastructure and Transport announced that it will publicly notify the "Partial Amendment to the Designation of Agencies Entrusted with Display and Advertising Tasks" from the 30th until the 20th of next month, containing these measures.

According to the amendment, online monitoring using actual transaction report data will be introduced first. Since the implementation of monitoring for false and exaggerated real estate advertisements in August last year, the need to strengthen crackdowns on so-called 'bait listings' has been continuously raised.

Accordingly, the Ministry designated the Korea Real Estate Board, which holds real transaction information, as an additional entrusted agency for monitoring tasks. By linking systems with Naver Real Estate, a real estate advertising platform, the crackdown on false listings left online after transactions are completed will be intensified.

To ensure smooth establishment of the system, after a three-month grace period, licensed real estate agents who do not delete advertisements for properties after a transaction is concluded will be subject to fines of up to 5 million KRW.

Advertisements for completed real estate transactions will be voluntarily deleted by platform operators, but no fines will be imposed on licensed real estate agents who posted ads but did not conclude transactions.

At the same time, standards for specifying location and move-in dates will be improved.

Under the current "Detailed Standards for Display and Advertising of Brokerage Objects," the method of specifying the location of brokerage objects is regulated only by categorizing into ▲detached houses ▲apartment complexes ▲commercial buildings among neighborhood living facilities. There are no clear regulations for specifying the location of other buildings. Therefore, the Ministry plans to improve this by requiring the specification of eup, myeon, dong, ri (administrative divisions) and floor numbers for buildings other than residential houses.

Also, the regulation that restricts move-in dates to be displayed only as 'actual move-in date' or 'immediate move-in' will be improved. The current regulation somewhat conflicts with actual transaction conditions, as it requires specifying move-in dates in advertisements despite the need for preparation procedures such as loans after real estate contracts.

The amendment includes provisions allowing the move-in date to be displayed as early, mid, or late month of the possible move-in month if the parties to the transaction agree to adjust the move-in date, aiming to narrow the gap between regulations and actual situations.

Han Jeong-hee, Director of the Real Estate Industry Division at the Ministry of Land, Infrastructure and Transport, said, "We expect a significant effect in blocking false listings through this amendment," and added, "We will continue to strengthen monitoring and expand private sector cooperation to establish a sound real estate market order."

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