Seoul City Refers 9 Disruptors Including 'Kkangtong Jeonse Illegal Brokerage' to Prosecutors

High-Intensity Investigation Planned for Real Estate Illegal Activities Next Year as Well

[Asia Economy Reporter Kiho Sung] The Seoul Metropolitan Government's Civil Life Judicial Police Unit announced on the 23rd that it has identified and sent to the prosecution nine individuals disrupting real estate supply and transaction order, including real estate agents illegally brokering "Kkangtong Jeonse" (empty-can Jeonse) leases that threaten citizens' housing stability and winners of special supply fraudulent subscription.

By category, there were ▲ five people violating real estate transaction order such as illegal brokerage of Kkangtong Jeonse, and ▲ four people disturbing supply order by winning special supply through false residence registration.

The investigation into illegal brokerage of Kkangtong Jeonse was conducted over four months from September, focusing on newly built multi-family housing dense areas such as Gangseo-gu with high Jeonse price ratios, based on citizen reports and information sharing with the Seoul Metropolitan Police Agency. The investigation revealed that many Kkangtong Jeonse cases involved inflating prices of newly built villas whose market prices are difficult to ascertain to induce contracts. It was confirmed that real estate agents and brokerage assistants knowingly participated in illegal brokerage activities to receive performance-based compensation despite the high risk of Kkangtong Jeonse.

Furthermore, the Seoul Civil Life Judicial Police Unit investigated winners of special supply in popular subscription complexes, so-called "lottery complexes," where housing prices surged in the second half of last year, expecting several hundred million won in price gains. As a result, four fraudulent subscription winners were booked for violating the Housing Act and sent to the prosecution.

The types of detected fraudulent special supply subscriptions include ▲two recommended by institutions, ▲one newlywed couple, ▲and one supporting elderly parents. These individuals obtained subscription qualifications for Seoul residence or increased their subscription points by moving their addresses only to friends' houses, one-room apartments, officetels, etc., where they did not actually reside, then applied for special supply and won.

Violations of the Real Estate Agents Act by illegally brokering Kkangtong Jeonse can result in imprisonment of up to one year or fines up to 10 million KRW. Violations of the Housing Act by fraudulent subscription through false or improper methods can lead to imprisonment of up to three years or fines up to 30 million KRW, cancellation of the sales contract, and subscription restrictions for up to 10 years.

The Seoul Metropolitan Government emphasized that citizen reports are crucial in investigating illegal real estate activities and requested active reporting if related crimes are discovered or if victims are affected.

Kim Myung-joo, head of the Seoul Civil Life Judicial Police Unit, stated, "Most victims of Kkangtong Jeonse are young adults in their 20s and 30s and newlywed couples, making it a crime that must be eradicated." He added, "As Kkangtong Jeonse-related damages are expected next year due to the real estate downturn, we plan to conduct rigorous investigations into real estate crimes to ensure citizens' housing safety and ask for citizens' active reporting as well."

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