Gumi City to Strongly Sanction Illegal Real Estate Transactions... 756 Million Won in Fines to Be Imposed

12 Violations Detected, 6 Brokerages Suspended
Cases Referred for Investigation and Prosecution

Gumi City in North Gyeongsang Province has launched a large-scale crackdown on illegal real estate transactions to restore order in the property market.

Gyeongbuk Gumi City Hall Exterior View

According to Gumi City on the 31st, the authorities are focusing their investigation on over 130 transactions involving construction companies and licensed real estate agents, where suspicions of up-contracts, down-contracts, and name lending have been raised.

Since the investigation began in December last year, 34 cases have been completed so far, with 12 violations detected and a total of 265 million won in fines imposed.

In particular, violations of the Licensed Real Estate Agents Act were confirmed, resulting in six brokerages being suspended from business.

For the 27 cases currently under investigation, fines totaling 491 million won are scheduled to be imposed.

Additionally, about 110 cases suspected of illegal transactions such as name lending have been referred to investigative agencies and reported for violating the Act on the Registration of Real Estate under Actual Owner's Name.

Most of the transactions uncovered in this crackdown involved old multi-family houses (one-room apartments), with sales primarily conducted by taking over existing loans and security deposits after remodeling.

This is a form of 'gap investment,' where properties are purchased with small capital, which experts warn could lead to jeonse deposit return problems and potential losses for tenants.

The city plans to continue its rigorous investigations to eradicate illegal real estate transactions.

To this end, it will expand the scope of investigations in cooperation with related agencies such as the tax office and police, and take strong administrative measures against any violations detected.

Kim Youngseok, head of Gumi City's Land Information Division, emphasized, "Although the investigation process is complex and extensive, with some subjects hiring lawyers to respond, we will carry out a thorough investigation to ensure the soundness of the real estate market."

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