Gyeonggi-do Detects 219 Cases of False Real Estate Transactions... Imposes Fines of 1.78 Billion KRW

[Asia Economy (Suwon) = Reporter Lee Young-gyu] #1 Mr. A reported a real transaction of selling an apartment in Gimpo City to Mr. B for 320 million KRW. However, the Gyeonggi Province investigation revealed that the actual transaction amount was 200 million KRW. The province imposed a total fine of 15 million KRW on both the seller and buyer for falsely reporting the price 120 million KRW higher to manipulate the market price.

#2 Corporation C signed a sales contract and reported a real transaction of an apartment in Uijeongbu City with Mr. D for 340 million KRW, but the investigation revealed that Mr. D was the son of Corporation C’s representative, leading to a report to the National Tax Service for suspected gift tax evasion.

Gyeonggi Province caught 219 individuals who falsely reported real estate transactions to evade taxes or manipulate real estate prices.

From September to December last year, Gyeonggi Province conducted a special investigation into 2,542 suspected false real estate reports across 31 cities and counties within the province, identifying 219 offenders (113 cases) and imposing fines totaling 1.781 billion KRW, the province announced on the 6th.

The province classified suspicious cases of false reporting as those involving exaggerated or understated transaction prices, false contract dates, sales between special relations (relatives), unconfirmed transaction payments, false reports without monetary transactions, and transactions suspected of gifts in funding plans for housing trades in speculative overheating zones or regulated areas.

Besides the 219 caught, the province notified the National Tax Service of 287 cases where no direct evidence was found in transaction documents but the sellers and buyers were confirmed to be special relations such as family or relatives, or where transactions were reported at absurd prices compared to surrounding market prices, requesting tax audits to check for illegalities such as capital gains tax evasion.

By type, there were ▲127 cases of sales between special relations ▲20 cases of suspicious transaction prices ▲13 cases of unconfirmed transaction payments ▲10 cases of payment in kind ▲117 other cases (including suspected disguised gifts).

The province is still analyzing additional data for 115 cases where investigations are incomplete. The remaining 2,027 cases were closed with no suspicion.

Additionally, the province separately identified 8 real estate agents for unfair practices such as charging excessive brokerage fees and brokering transactions of properties with resale restrictions. The province plans to file criminal charges and administrative sanctions against these agents.

Hong Ji-seon, Director of the Urban Housing Office of Gyeonggi Province, emphasized, "Gyeonggi Province plans to continue special investigations into suspected false real estate transaction reports in 2022 to establish a fair and transparent transaction order."

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