Gyeonggi-do Detects 106 Cases Violating Real Estate Development Business Act Including Failure to Meet Registration Requirements

Gyeonggi Provincial Government

Gyeonggi Province has identified 106 companies that violated the 'Real Estate Development Business Act' due to failure to meet registration requirements.

Gyeonggi Province announced on the 23rd that, following an investigation into illegal activities targeting 743 registered real estate development business operators in the province from September 6 to November 3, it found 106 companies that either did not operate the mandatory office required for real estate development business registration or failed to report changes in their registration details.

Gyeonggi Province has closed 52 companies' real estate development businesses and is proceeding with the cancellation of registration for 9 companies confirmed not to be operating offices. Additionally, a total fine of 66 million KRW will be imposed on 97 companies that failed to report changes in their registration details.

The real estate development business registration system was introduced in 2007 to prevent consumer damage in real estate transactions such as sales and leasing. It mandates legal registration when developing or supplying real estate above a certain scale (building total floor area of 3,000㎡ or annual 5,000㎡, land area of 5,000㎡ or annual 10,000㎡).

Registered real estate development business operators must meet registration requirements such as employing at least two full-time professionals, having corporate capital of at least 300 million KRW (or asset valuation of 600 million KRW for individual businesses), and securing office space. Failure to meet these requirements results in cancellation of registration.

If there are changes in the registration requirements or registration details (such as representative, executives, location) of registered companies, they must report these changes to the province through the Real Estate Development Association within 30 days from the date of change.

Ko Jung-guk, Director of the Land Information Division of Gyeonggi Province, stated, "We will continue to actively work to prevent damage to residents caused by unqualified real estate development companies through field-centered inspections," and added, "We will promote deregulation and improvement of business conditions through meetings with real estate development companies."

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