Real Estate Supervision Task Force to Launch on November 3: "Zero Tolerance for Criminal Activities"

Pooling Capabilities Across Ministries for Task Force Operations
"We Will Ensure the Complete Eradication of Illegal Real Estate Activities"
Abnormal Transaction Investigations Expanded to the Seoul Metropolitan Area
National Tax Service to Establish Separate "Tax Evasion Reporting Center"
National Police Agency Announces Customized Crackdowns by Region

Yonhap News Agency

The government has announced that it will launch an inter-ministerial "Real Estate Supervision Task Force" under the Prime Minister's Office on November 3, as part of efforts to eradicate illegal activities in the real estate sector and establish market order. In addition, authorities have investigated suspected illegal real estate transactions, uncovering 2,696 cases and referring 35 of them for criminal investigation. The scope of abnormal transaction investigations will be expanded to cover the entire Seoul metropolitan area, and a concentrated reporting period will be operated until the end of the year.

The Office for Government Policy Coordination, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the National Tax Service, and the National Police Agency held a joint briefing at the Government Complex Seoul on October 30. They announced the launch and direction of the government-wide supervisory body for illegal real estate activities, which was previously announced as part of the October 15 real estate policy measures. The authorities also explained the progress and plans regarding investigations and prosecutions of illegal real estate activities.

Real Estate Supervision Task Force Launched: "Zero Tolerance Approach"

The government had previously stated its intention to establish a supervisory body under the Prime Minister's Office to address illegal transactions and price manipulation in the real estate market. Until the official launch of this body, the Real Estate Supervision Task Force will be introduced on November 3, bringing together the capabilities of relevant ministries.

The task force will be a permanent organization composed of the Office for Government Policy Coordination, the Ministry of Land, Infrastructure and Transport, the Ministry of the Interior and Safety, the Financial Services Commission, the National Tax Service, and the National Police Agency. It will strengthen coordination and cooperation in investigating and prosecuting illegal real estate activities, enabling systematic and swift responses. The task force will also be responsible for preparing the rapid launch of the supervisory body.

Kim Yongsoo, Second Deputy Minister of the Office for Government Policy Coordination, stated, "Centered around the inter-ministerial task force, we will respond with zero tolerance to real estate crimes that threaten the lives of ordinary citizens and young people. We plan to further strengthen our capabilities to ensure the complete eradication of illegal real estate activities."

Illegal Transaction Investigations Expanded to the Seoul Metropolitan Area: "Concentrated Reporting Period Until Year-End"

The Ministry of Land, Infrastructure and Transport is investigating abnormal housing transactions and rental fraud in Seoul, reporting suspicious transactions to relevant agencies. To date, 2,696 suspicious transactions have been reported to agencies such as the National Tax Service and the Financial Services Commission. Of these, 35 cases have been referred to the National Police Agency for investigation.

Going forward, the scope of investigations will be expanded to the entire Seoul metropolitan area. As a follow-up to the October 15 measures, planned investigations will be conducted in all of Seoul, 12 regions in Gyeonggi Province, and areas at risk of the "balloon effect" (such as Dongtan in Hwaseong, Guri, etc.). Joint on-site inspections will also be conducted to intensively check for violations of the real residence requirement related to land transaction permits and for disguised gifts, focusing on the sources of funds.

Investigations into price manipulation will also be accelerated. Of the contract cancellations for Seoul apartments reported between April 2023 and August 2024, 425 cases have been selected for investigation. In particular, cases from this year are being prioritized, with 8 suspicious cases already referred for investigation. Currently, 605 abnormal real estate transactions involving foreigners are under investigation. Among these, investigations into housing transactions will be completed this month, while investigations into non-residential and land transactions are scheduled to be completed by the end of the year.

Kim Gyucheol, Director General for Housing and Land Policy at the Ministry of Land, Infrastructure and Transport, said, "We will actively respond to illegal real estate activities by operating a concentrated reporting period for market disturbance activities until the end of the year. We also plan to continuously strengthen the effectiveness of market supervision functions, such as the designation of special judicial police for real estate and the initiation of investigations."

Financial Authorities to Inspect Misuse of Business Loans for Housing Purchases

The Financial Services Commission and the Financial Supervisory Service are inspecting whether business loans are being misused for purposes other than intended, such as purchasing housing. Among business loans newly issued by banks from January to July (5,805 cases), 45 cases of misuse for non-intended purposes were detected. Of these, 25 cases have had their loans recovered, and the remaining cases are scheduled to be resolved by the end of the year. On-site inspections of secondary financial institutions will be completed next month.

Regulations will be strengthened for borrowers who misuse business loans for purposes such as purchasing housing. Going forward, violations of business loan agreements will be registered with the Korea Credit Information Services, just like household loans, so that all financial institutions can use this information in their credit assessments. The authorities are also actively considering regulations to restrict the issuance of new business loans to violators by all financial institutions in the future.

The National Tax Service is responding strongly by conducting tax audits whenever market monitoring detects suspected tax evasion through disguised gifts or other means. Until the market stabilizes, the verification of funding sources for high-priced apartment purchases will be significantly strengthened, and all gift transactions will be thoroughly reviewed. In cooperation with the Ministry of Land, Infrastructure and Transport, funding plans will be shared in real time, and a "Real Estate Tax Evasion Reporting Center" will be established separately.

The National Police Agency is conducting a special crackdown. To date, a total of 146 cases involving 268 individuals related to eight major illegal activities, including price manipulation, have been investigated and prosecuted, resulting in 64 people being referred for indictment. Suspicious cases related to price manipulation referred by the Ministry of Land, Infrastructure and Transport are currently under investigation by a dedicated team at the Seoul Metropolitan Police Agency. In the future, customized crackdowns will be conducted, focusing on housing in major cities such as Seoul and the metropolitan area, and on land in other small and medium-sized cities.

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