'Re-designation of Land Transaction Permission Zones in 24 Cities and Counties Including Suwon Amid Concerns Over Planned Real Estate Speculation'

Gyeonggi Provincial Government

Gyeonggi Province has re-designated 24.82㎢ of land in 24 cities and counties within the province, including Suwon-si, as a land transaction permission zone for one year until July 3, 2024, due to concerns over speculative real estate investment by planned real estate companies.

Gyeonggi Province announced on the 26th that it held a review by the Urban Planning Committee and resolved to re-designate the 24.82㎢ of land, whose designation as a land transaction permission zone was set to expire on the 28th of this month and the 3rd of next month, as a land transaction permission zone for one year until July 3, 2024.

Previously, to block speculative investment by planned real estate companies, Gyeonggi Province designated 3.35㎢ in 18 cities and counties including Suwon-si as a land transaction permission zone in June 2021, and 120.81㎢ in 21 cities and counties including Suwon-si in July 2022.

Considering the real estate market trends and the situation of speculative investment by planned real estate companies comprehensively, Gyeonggi Province explained that most lands unrelated to planned real estate (99.34㎢) were released from the designation, while lands held by suspected planned real estate companies (10.95㎢) and lands included in development projects such as the 3rd New Town (13.87㎢) were extended for one year due to concerns over speculative activities.

To trade land within the land transaction permission zone, permission must be obtained from the competent mayor or county governor. If a contract is made without permission or permission is obtained by fraudulent means, imprisonment for up to two years or a fine of up to 20 million won will be imposed.

Once permission is granted, the land must be used for the permitted purpose for a certain period, and if violated, a performance penalty of up to 10% of the acquisition price will be imposed annually.

A Gyeonggi Province official emphasized, "We have rationally adjusted the re-designated and released areas to prevent illegal transactions or speculation by planned real estate companies in advance and to reduce inconvenience for actual demanders. We will actively respond to speculative investment by planned real estate companies by monitoring the overall transaction trends of forest land in the province through a continuous monitoring system and conducting detailed investigations on suspicious transactions."

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