Seoul to Crack Down on Illegal Real Estate Activities with AI-Driven Abnormal Transaction Monitoring

Published 05 Mar.2026 11:15(KST)

Preemptively Detecting Abnormal Transactions to Ensure a Safe Trading Environment

On March 5, the Seoul Metropolitan Government announced that it will launch an intensive inspection of illegal real estate activities ahead of the busy spring moving season. The city plans to fully operate its AI-based real estate market transaction analysis platform, the "Seoul Real Estate Market Trend Analysis System," to preemptively detect abnormal transactions.

Due to the aftermath of loan regulations and other factors, apartment transactions are shrinking, causing listings to continue accumulating. On the 24th, at a real estate office in Gangnam, Seoul, sales and jeonse (long-term lease) listings are posted. Photo by Jinhyung Kang

Through these measures, the Seoul Metropolitan Government aims to create a safe real estate market environment by preventing various forms of illegal activities that often occur during the peak moving season, when transaction volumes increase. These include false or exaggerated advertisements and unregistered brokerage services. The inspections and enforcement efforts will be jointly conducted by the Ministry of Land, Infrastructure and Transport, the Seoul Metropolitan Police Agency for Civil Affairs, and 25 district offices.

The city will focus on monitoring a range of violations, including: unqualified and unregistered brokerage activities; the transfer or rental of real estate agent licenses and registration certificates; charging brokerage fees above legal limits; listing of fake properties and other activities that disrupt transaction order; violations related to the display and advertising of online brokerage listings; and improper preparation of contracts and property explanation statements. If any illegal activities are identified, the city will impose strict measures such as administrative penalties and, when necessary, refer cases for criminal investigation.

Real estate agencies located near large apartment complexes that are scheduled for occupancy, where significant numbers of lease transactions occur to match move-in dates, will also be a particular focus. In these large complexes, the city will closely inspect for illegal brokerage practices such as fake listings, unregistered brokerage, and the preparation of dual contracts.

In joint inspections and crackdowns conducted last year with district offices, the Seoul Metropolitan Government uncovered a total of 4,455 illegal activities. The administrative penalties imposed on the real estate agencies involved included: 22 cases of license revocation or suspension; 58 cases of registration cancellation; 149 cases of suspension of business; 2,131 fines totaling 2.35 billion won; and 1,699 warnings or correction orders. In addition, 396 cases were referred for criminal investigation (prosecution).

Furthermore, in cooperation with the Ministry of Land, Infrastructure and Transport and district offices, the city will conduct on-site inspections to verify whether foreign buyers in land transaction permit zones are actually residing in the properties, as well as additional verification of documents such as funding plans and proof of residency status. These efforts are in response to rising concerns about reverse discrimination against domestic buyers and market disruption, given that there are currently no separate regulations governing foreign real estate transactions in Korea. If a buyer fails to comply with the "use obligation according to permit conditions," the city will issue an order to comply, and if the violation continues, it will impose enforcement fines or refer the case to investigative authorities for further action.

Ahn Daehee, head of the Seoul Urban Space Headquarters, stated, "By utilizing the Real Estate Market Trend Analysis System, which has been enhanced since 2024, we can proactively detect abnormal transactions, inspect illegal activities more thoroughly, and prevent the spread of harm." He added, "We will relentlessly track and take strict action against practices that disrupt market order and threaten the stability of citizens' housing."