Gyeonggi-do Investigates 1,900 Cases of 'Suspicious Transactions' in Foreigners and Corporations Land Transaction Permission Zones

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[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will conduct a focused crackdown on illegal speculation by foreigners and corporations within the 'Land Transaction Permission Zones' until the end of this year. In addition, it will investigate about 1,900 'suspicious transactions' within the Land Transaction Permission Zones since October last year.

The Gyeonggi Province Special Judicial Police Unit announced on the 6th that it will conduct an intensive investigation until the end of this year into illegal speculation by foreigners and corporations within the Land Transaction Permission Zones, such as using false contracts or fictitious residence registration.

The investigation targets transactions since October last year in 23 cities and counties designated as Land Transaction Permission Zones in the province, including about 1,760 cases involving foreigners and about 140 cases involving corporations.

The main investigation contents include acts for real estate speculation purposes such as ▲ falsely reporting the contract date on real estate contracts as before the permission designation date to avoid obtaining permission ▲ reselling or leasing during the mandatory usage period of owned houses after land transaction permission in a manner inconsistent with the permitted purpose ▲ fictitious residence registration to falsely meet residency requirements ▲ acquiring land under another person's name or evading permission through illegal gifting, etc.

If permission is not obtained or is obtained through fraudulent means, imprisonment of up to 2 years or a fine of up to 30% of the individual publicly announced land price at the time of contract conclusion will be imposed.

Earlier, due to concerns that foreigners and corporations were fueling housing price increases through speculative transactions beyond actual use, from October 31, last year to April 30, 2022, the entire area of 5,249.11㎢ across 23 cities in the province including Suwon City was designated as Land Transaction Permission Zones. In the designated areas, corporations and foreigners must obtain permission from the competent market authority considering mandatory usage periods and actual demand to acquire land including houses.

Kim Young-su, head of the Gyeonggi Province Special Judicial Police Unit, emphasized, "The region where foreigners purchased the most houses is Gyeonggi Province, and concerns about real estate speculation are high due to their unregulated loans and unclear sources of funds. We will conduct a strong investigation into any illegalities in the process of foreigners and corporations purchasing houses within the Land Transaction Permission Zones and take strict measures against real estate speculation."

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