Ministry of Land, Infrastructure and Transport Confirms Housing Purchases by Speculators in Water, Use, and Seong Areas

Seonho Park, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport

[Asia Economy Reporter Lee Chun-hee] The Ministry of Land, Infrastructure and Transport explained that the designation of Suwon City's Yeongtong, Gwonseon, and Jangan districts, as well as Uiwang and Anyang City's Dongan district, as regulated areas was "based on confirmed housing purchases by speculative forces." Regarding the activities of the task force against illegal real estate market activities starting on the 21st, the ministry stated, "We have received reports from more than 10 complexes nationwide," and added, "We will begin preliminary investigations starting today (the 21st)."

On the 21st, First Vice Minister Park Seon-ho appeared on tbs Radio's Kim Eo-jun's News Factory and made these remarks. Vice Minister Park acknowledged the recent sharp rise in housing prices in the 'Su-Yong-Seong (Suwon, Yongin, Seongnam)' area, saying, "It is true that housing prices in areas with relatively lower regulatory levels have risen significantly in the past one or two months," and explained, "The general pattern of housing price increases shows that prices rise first in Gangnam, Seoul, and then begin to rise in Gyeonggi Province with a slight time lag." He also noted, "Areas that had quite inconvenient transportation conditions, such as the Seoul Metropolitan Area Express Train (GTX) or the Shinansan Line, have seen value increases due to new transportation network plans, which is understandable."

However, Vice Minister Park said, "Upon closer examination, there are parts that cannot be explained by this alone," and confirmed, "We have identified significant speculation by multi-homeowners, outsiders, and even investments from local regions moving to the capital, as well as speculation by corporations and legal entities." He reported, "The number of housing purchases by such speculative forces has been confirmed to be about 5 to 10 times higher."

Vice Minister Park also spoke about the task force against illegal real estate market activities, stating, "We have received reports related to housing price collusion from more than 10 complexes nationwide," and added, "We will begin preliminary investigations immediately starting today." He outlined the plan, saying, "From next week, we will proceed with evidence collection and on-site verification in earnest."

Regarding the recently spreading 'tax saving' practices, Vice Minister Park said, "In my view, most of these correspond to illegal or quasi-illegal activities," and emphasized a strong stance, stating, "The task force includes not only the prosecution, police, and Ministry of Land, Infrastructure and Transport but also the National Tax Service. All suspicious cases identified by the task force will be reported to the National Tax Service for thorough investigation."