YouTube Included in Investigation of Online Collusion Among Landlords
Separate Dedicated Team Formed Within Ministry of Land, Infrastructure and Transport... Special Judicial Police Expanded
Thorough Verification of Taxation and Income Information of Investigation Targets
[Asia Economy Reporter Moon Jiwon] The frontline real estate industry is on high alert over the Ministry of Land, Infrastructure and Transport's newly established 'Permanent Real Estate Investigation Team (tentative name)' set to launch next month. Comprising around 15 members, including special judicial police officers, the team is expected to conduct unprecedentedly intensive crackdowns not only on illegal activities related to real estate transactions but also on YouTubers involved in recent controversies over artificially inflating housing prices. However, some speculate that the increase in personnel is minimal and may serve merely as a warning to pressure the market.
According to the Ministry of Land, Infrastructure and Transport on the 20th, the Permanent Real Estate Investigation Team, to be established within the ministry as early as next month, will consist of about 10 to 15 personnel, including dispatched members from the National Tax Service, Financial Services Commission, and Financial Supervisory Service. The ministry will also increase the number of its special judicial police officers (hereafter referred to as special judicial police) scattered across the Land Policy Division and Real Estate Industry Division and assign them to the new team.
A ministry official explained, "With the amendment to the 'Act on Reporting and Inspection of Real Estate Transactions' coming into effect on the 21st of next month, the Minister of Land, Infrastructure and Transport will gain investigative authority over reported transaction details, so we are securing additional personnel to handle this responsibility." In fact, the ministry will be able to request data related to the family relationships, income, and taxation of investigation targets suspected of illegal activities.
The Permanent Investigation Team will focus on illegal resale, trading of subscription savings accounts, unqualified or unregistered brokerage, up/down contracts, and, following amendments to the Licensed Real Estate Agents Act effective from the 21st of next month, collusion activities among housing owners and licensed real estate agents.
Until now, despite repeated collusion activities between homeowners aiming to raise asking prices in areas like Gangnam-gu and Mok-dong in Yangcheon-gu and real estate agents trying to lower prices to increase transaction frequency, there were no enforcement regulations to punish such acts. However, from next month, these activities will be subject to imprisonment of up to three years or fines of up to 30 million KRW.
Real estate-related YouTube channels and social networking services (SNS), which have recently caused growing side effects, are also expected to become major investigation targets for the team. Currently, the ministry's special judicial police can only investigate violations stipulated under the Licensed Real Estate Agents Act, the Act on Reporting and Inspection of Real Estate Transactions, and the Housing Act, according to the Judicial Police Duties Act. Strictly speaking, they do not have authority to crack down on YouTubers.
However, the ministry's position is that if YouTubers commit illegal acts defined under the three laws mentioned above, investigations are naturally possible. For example, if a YouTube channel exerts specific influence with the intent to unfairly affect market prices, an investigation can be conducted. The ministry is reportedly closely monitoring domestic YouTubers for any such illegal elements.
Nonetheless, concerns have been raised that the ministry's increased enforcement and punishment regulations are not matched by sufficient personnel. Even if investigations focus only on unusual cases flagged through computerized real transaction reports, it would be challenging to thoroughly cover areas requiring direct investigation such as collusion, YouTube activities, and illegal resale.
Kwon Il, head of the Real Estate Info Research Team, said, "Among people owning multiple properties, there has been talk that 'those who pay taxes are fools.' Although manpower is limited and it won't be easy, it is crucial for the government to strictly supervise and instill awareness that illegal activities in the market are unacceptable to stabilize housing prices."
A ministry official stated, "Although the number of special judicial police is not large, previously they were also assigned general administrative duties, but now they will focus solely on enforcement to reduce their burden. They will mainly handle major cases and, for specific incidents, cooperate with special judicial police from local governments to conduct investigations."
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