Gyeonggi-do Launches Special Investigation into Illegal Real Estate Transactions Including Up-Down Contracts from September to November

Gyeonggi Provincial Government

Gyeonggi Province will conduct a joint special investigation with city and county governments targeting suspected false real estate transaction reports and illegal brokerage activities across the province from September to November.

The investigation targets a total of 1,718 cases reported between January and June this year, including ▲ 'up-down contracts' reported to evade taxes and increase mortgage loan limits ▲ false transaction reports involving high-price declarations without monetary transactions followed by cancellations to manipulate real estate prices ▲ and false reports raised through civil complaints or media coverage.

Gyeonggi Province will also examine the sources of funds listed in the housing transaction financing plans. Special focus will be placed on minors acquiring homes worth over 300 million KRW, individuals under 30 purchasing high-priced homes exceeding 900 million KRW, and transactions involving other borrowings without loans.

If illegal activities by unlicensed persons or certified real estate agents are detected in transactions reported as direct deals without brokers, the province plans to report them to investigative authorities.

The investigation will request related explanatory materials from the parties involved in the transactions. If the submitted materials are insufficient or not provided, the parties will be summoned for an in-person investigation.

Even if explanatory materials are submitted, cases showing significant discrepancies from market prices or strong suspicions of tax evasion such as capital gains tax or gift tax will be reported to the National Tax Service or the relevant tax office.

Those who submit false explanatory materials will face fines up to 30 million KRW, and those who falsely report transaction prices or other details will be fined 5% of the actual real estate transaction value and subjected to tax audits for suspected capital gains or gift tax evasion.

In the first half of this year, Gyeonggi Province identified 146 violators of real estate transaction reporting through special investigations, imposing fines totaling over 770 million KRW, and requested tax audits from the National Tax Service for 311 suspicious cases.

Individuals who report illegal real estate transactions will receive a reward of up to 10 million KRW. Eligible reports include false declarations of transaction prices or transactions without monetary exchange, and can be submitted to the real estate management departments of the city, county, or district where the property is located.

Ko Jung-guk, Director of the Land Information Division of Gyeonggi Province, stated, "We will focus administrative efforts on investigating illegal real estate transactions to establish a fair and transparent real estate transaction order and realize tax justice," adding, "Voluntary reporters will receive reduced fines."

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