"Metropolitan Area Villas for 100 Million Won"... Seoul Cracks Down on Agencies Posting Over 1,100 False Listings

Apartment complexes in downtown Seoul as seen from Namsan. Photo by Yonhap News

A real estate agency in Seoul has been caught posting false advertisements at prices significantly lower than the market rate. It was also found that an assistant agent engaged in illegal activities by concealing their identity while providing guidance and consultations.

The city announced on the 27th that, after receiving a tip from a citizen and conducting a focused investigation into four agencies, it uncovered illegal activities at three of them, including false or exaggerated advertising and failure to disclose the assistant agent's status. The city has taken action against these agencies, including imposing fines, administrative measures, and requesting criminal investigations.

These agencies were found to have advertised 1,102 properties for which they had not actually received listings. They also registered a large number of properties outside their jurisdiction, but were unable to provide listing agreements when requested by the city. As a result, the city requested the relevant district offices to impose fines and take administrative action. Advertising or displaying properties without a proper listing agreement, or posting photos that do not match reality, can result in fines of up to 5 million won.

It was also confirmed that assistant agents repeatedly committed violations by handling consultations, guidance, and site visits without disclosing their identity in advance. One of the three agencies had not even reported the employment of its assistant agent. Assistant agents are required to clearly disclose their identity when assisting with work, and failure to do so can lead to fines of up to 5 million won. Failure to report employment is also subject to fines and other administrative penalties.

Additionally, the city discovered that some agency representatives had entrusted their work phones to assistant agents and instructed them to post advertisements directly, which constitutes “unauthorized advertising.” The case has been referred to the Municipal Police Bureau for investigation. If an assistant agent posts advertisements directly, they may face up to one year in prison or a fine of up to 10 million won.

In light of this crackdown, the city plans to recommend that the Ministry of Land, Infrastructure and Transport strengthen real-name verification and require the attachment of listing agreements to prevent recurrence. The city will also enhance its ongoing monitoring system for violations related to real estate advertising and, when suspicious reports are received, will coordinate investigations and actions with the Municipal Police Bureau and district offices.

Cho Namjun, Director of Urban Space Headquarters for Seoul, stated, “When an assistant agent conceals their identity during consultations, it becomes unclear who is responsible for the content, which can lead to harm for clients. Properties with excessively edited photos or unusually low prices are likely to be ‘bait’ listings, so please make sure to follow safety guidelines, such as checking whether the agency representative is handling consultations directly, to avoid falling victim.”

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