Korea Real Estate Board Launches Intensive Investigation into False Contracts Inflating Actual Transaction Prices

The Korea Real Estate Board announced on the 20th that it will conduct a high-intensity planned investigation into market disruption activities involving false contracts and reports followed by cancellations, aimed at inflating market prices, in collaboration with the Ministry of Land, Infrastructure and Transport's Real Estate Consumer Protection Planning Team.

View of apartment complexes in the Gangnam area from the 63 Square Observatory in Yeouido, Seoul / Photo by Jinhyung Kang aymsdream@

Recently, cases of contract cancellations after record-high sales have been continuously occurring, prompting the selection of suspicious cases of so-called 'real transaction price inflation' to investigate whether false reporting has taken place.

This planned investigation targets 1,086 cases suspected of real transaction price inflation, including multiple record-high cancellation transactions and record-high cancellation transactions among high-priced housing trades in speculative areas, from 2021 to February of this year. The investigation period will last until June, with possible extensions if necessary.

The Real Estate Board plans to focus on verifying the existence of contracts, payment and refund of deposits (including double compensation) to determine whether false real transaction reports were made. It will also investigate tax evasion and violations of loan regulations during the funding process.

If it is confirmed that a sales contract was not concluded and a false report was made, local governments will impose a fine of 30 million KRW, and suspected illegal cases will be referred to the relevant police department for investigation.

Additionally, if it is proven that licensed real estate agents or others fabricated the completion of transactions to unduly influence the market price of brokerage objects, disciplinary actions such as suspension of qualifications will be imposed.

Son Tae-rak, President of the Korea Real Estate Board, stated, "We will strictly respond to various market disruption activities that may occur during the government's normalization of real estate regulations. Through this planned investigation, we will meticulously examine price manipulation activities and continuously monitor cancellations that occur thereafter."

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