Gyeonggi-do Cracks Down on 333 Real Estate False Reporters... Imposes Fines of 1.48 Billion KRW

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 333 individuals who falsely reported real estate transactions for purposes such as tax evasion or manipulating real estate prices.

Gyeonggi Province announced on the 4th that from March to June, it conducted a special investigation into 2,491 suspected cases of false real estate transaction reports across 31 cities and counties within the province, uncovering 333 offenders (83 cases) and imposing fines totaling 1,479.7 million KRW on them.

The province classified suspected false reporting cases as those involving exaggerated or understated transaction prices, false contract dates, transactions between special relations (relatives), inability to verify transaction funds, false reports without monetary transactions, and transactions suspected of gifts in funding plans for housing transactions in speculative overheating districts or regulated areas.

The investigation results revealed ▲14 individuals who made "up contracts" by agreeing on prices higher than the actual transaction amount to manipulate market prices or increase mortgage loan limits ▲20 individuals who made "down contracts," a double contract where the contract price is lower than the actual transaction price to reduce capital gains tax ▲and 299 individuals who delayed reporting, falsely reported contract dates, or failed to submit documents, totaling 333 offenders. The province imposed fines amounting to 1,479.7 million KRW on these 333 individuals.

Additionally, among the 2,491 suspected cases, excluding the 83 detected cases, 309 cases where no suspicious points were found in transaction documents but where the sellers and buyers were confirmed to be special relations such as family or relatives, or where transactions were reported at unreasonable prices compared to surrounding market prices, were reported to the National Tax Service for tax investigations regarding possible capital gains tax evasion or other illegalities.

By type, these included ▲110 cases of special relation transactions ▲31 cases of suspicious transaction prices ▲12 cases where transaction funds could not be verified ▲13 cases of debt repayment through property ▲and 143 other cases (including suspected disguised gifts).

The province also investigated unfair practices by licensed real estate agents and identified six individuals involved in unregistered brokerage activities and charging excessive brokerage fees. The province plans to file criminal charges and administrative sanctions against these agents.

Hong Ji-seon, Director of the Urban Housing Office of the province, stated, "In the second half of the year, we plan to continue special investigations into suspected false real estate transaction reports to establish a fair and transparent transaction order," adding, "We will reduce fines for those who voluntarily report."

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