Gyeonggi-do Imposes 700 Million KRW Fine on 146 Individuals for False Real Estate Transaction Reports

Gyeonggi Provincial Government

Gyeonggi Province has identified 146 individuals who falsely reported real estate transactions through up-down contracts and false declarations for purposes such as tax evasion and market price manipulation.

From March to June this year, Gyeonggi Province conducted a special investigation into 1,814 suspected cases of false real estate transaction reports across 31 cities and counties within the province. On the 10th, it announced that 146 false reporters were identified and fined a total of 770 million KRW in penalties.

Among the major cases, Mr. A reported a sale of a house in Paju-si to Mr. B for 320 million KRW in the actual transaction report. However, the investigation revealed that the reported price was inflated by 70 million KRW above the actual transaction amount of 250 million KRW, aiming to increase the mortgage loan limit. Accordingly, Gyeonggi Province imposed a total fine of 25 million KRW on both the seller and the buyer.

Mr. C sold an apartment in Yongin-si for 400 million KRW and reported the actual transaction accordingly, but it was discovered that part of the payment was received in an account owned by his child, leading to a notification to the National Tax Service for suspected gift tax evasion.

Additionally, investigations into illegal activities by licensed real estate agents resulted in the separate identification of three individuals involved in unlicensed brokerage and excessive brokerage fee collection. These agents are expected to face criminal charges and administrative sanctions.

Although no suspicious points were found in transaction documents, Gyeonggi Province reported 311 cases to the National Tax Service where the sellers and buyers were confirmed to be family, relatives, or special relations, or where transactions were reported at unreasonable prices compared to surrounding market prices.

By type, these include ▲104 cases of special relation transactions ▲43 cases of suspicious transaction prices ▲25 cases where transaction payment could not be confirmed ▲8 cases of payment in kind ▲131 cases of others (such as suspected disguised gifts).

Ko Jung-guk, Director of the Land Information Division of Gyeonggi 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, "Voluntary reporters will be eligible for reduced fines."

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