Gyeonggi-do, Joint Special Investigation by Si/Gun on Real Estate Illegal Activities

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

On the 15th, Gyeonggi Province announced that from March to June, it will conduct a joint special investigation with city and county governments across the province into suspected false or fraudulent real estate transaction price reports and illegal brokerage activities.

The investigation targets suspicious false reports among real estate transaction reports in the area, including tax evasion, exaggerated or understated transaction prices to increase mortgage loan limits, false transaction reports such as reporting the highest price without monetary transactions and then canceling to manipulate real estate prices, as well as false reports identified through complaints or media coverage.

They will also investigate the sources of funds listed in financing plans for housing transactions in speculative overheating zones and regulated areas. In particular, they will focus on minors acquiring homes priced over 300 million KRW, individuals under 30 purchasing high-priced homes over 900 million KRW, and transactions involving other borrowings without loans.

If the province determines that illegal activities by unlicensed persons or licensed real estate agents were involved in transactions reported as direct deals without brokers, it will request an investigation by the Gyeonggi Province Special Judicial Police.

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

Even if explanatory materials are submitted, cases showing significant discrepancies from market prices or strong suspicions 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 will 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.

Last year, through special investigations, the province detected 302 violations of real estate transaction reporting, imposed fines totaling approximately 2.37 billion KRW, and requested tax audits from the National Tax Service for 442 cases involving tax evasion.

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

A provincial official stated, "We plan to focus administrative efforts on investigating illegal real estate transactions to establish a fair and transparent 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.