Seoul City Uncovers 465 Illegal Real Estate Transactions in First Half, Including 'Price Inflation' Cases

Announcement of Real Estate Violation Cases Investigation Results for the First Half of This Year
20 Billion KRW in Fines Imposed... 391 Cases of Late Reporting Violations Most Frequent

Seoul City announced on the 6th that it conducted a continuous investigation of over 4,000 real estate transactions suspected of illegal activities such as false or delayed reporting in the first half of this year (January to June), resulting in the detection of a total of 465 cases (829 people) and the imposition of fines totaling 2 billion KRW. Among the types of penalties, 'violation of delayed reporting' accounted for the largest number with 391 cases.

[Image source=Yonhap News]

To establish order in real estate transactions, the city collects documents from transaction parties regarding transaction details that require verification, such as contract dates, transaction amounts, and funding plans, and conducts continuous investigations in cooperation with district offices.

To thoroughly block false contracts aimed at so-called 'house price inflation,' the city has been notifying the National Tax Service of transaction cancellations after reporting since last year. House price inflation is a method of manipulating market prices by reporting real estate transactions at high prices to raise asking prices, then canceling contracts without transferring ownership. Accordingly, Seoul City plans to impose income tax and other taxes on buyers and sellers if a contract is canceled after being concluded and penalty fees are incurred.

In addition to the most frequently detected violation of delayed reporting, the city also disclosed major violation types such as ▲false price reporting ▲false reporting other than price ▲suspected gift transactions. Seoul City urged caution during transactions, noting that fines are imposed not only on real estate agents who mediate false reports but also on buyers and sellers.

This investigation utilized the 'Real Estate Trend Analysis System' recently developed by Seoul City. According to the city, this system allows continuous monitoring of real transaction prices and transaction trends, including unusual trends such as the highest apartment transaction prices in development project areas and transaction cancellation reports. The city plans to continue using this system to quickly identify signs of abnormal transactions in major development areas and actively respond to market disruption activities.

Meanwhile, regarding the 'direct investigation authority of cities and provinces' related to real estate transaction reporting, which Seoul City and the Ministry of Land, Infrastructure and Transport have been discussing, the ministry is currently pursuing related legal amendments. If the Real Estate Transaction Reporting Act is amended to grant Seoul City direct investigation authority, it is expected to enable immediate responses to real estate market disruptions such as rental fraud and villa scams.

Cho Nam-jun, Director of the Urban Planning Bureau of Seoul City, said, "We plan to take strict measures without exception against illegal activities that distort and disrupt the real estate market through continuous investigations," adding, "We will establish a transparent real estate transaction order by strengthening continuous monitoring through the newly developed trend analysis system and utilizing various means."

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