Real Estate Market Illegal Activity Response Team and Permanent Actual Transaction Investigation Team Deployed
[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 5th that it will launch a planned investigation into actual transactions to prevent speculation and illegal activities in the surrounding areas related to the Jamsil Sports and MICE (Meetings, Incentives, Conferences, and Exhibitions) private investment project promoted by the Seoul Metropolitan Government.
On the same day, Seoul announced that it will officially proceed with the 'Jamsil Sports and MICE Private Investment Project,' which involves creating a sports complex facility and exhibition/convention spaces on the site of the Seoul Jamsil Sports Complex.
As the project intensifies, there is a high possibility of rampant speculative activities in the surrounding area. Therefore, the Ministry plans to deploy the Real Estate Market Illegal Activities Response Team (hereinafter the Response Team) and the Korea Appraisal Board’s Permanent Real Transaction Investigation Team (hereinafter the Investigation Team) to conduct a planned investigation into actual transactions.
According to the Ministry, this investigation will focus mainly on Jamsil-dong in Songpa-gu and Samseong-dong in Gangnam-gu, which are within the influence zone of the Jamsil MICE development project.
In addition to existing investigation targets such as transactions involving minors and suspected up-down contracts, the investigation will focus on ▲transactions with unclear sources of funds ▲speculative corporate transactions ▲and suspicious transactions involving inadequate submission of income and balance certificates newly required since March 13.
The Ministry also explained that it is conducting a planned investigation into actual transactions in the Yongsan Maintenance Depot area of Seoul, designated as a land transaction permission zone following the announcement of the 'Plan to Strengthen the Housing Supply Base in the Metropolitan Area' on the 6th of last month.
The investigation area includes the permission zone and adjacent areas such as Hangang-ro 1-3 ga-dong, Ichon-dong, and Wonhyo-ro 1-4 ga-dong. The investigation period is three months from this month until August, but it may be extended if necessary.
This investigation will focus on ▲suspected transactions evading permission within the permission zone and suspected transactions with questionable fund procurement in excluded areas (residential areas under 18㎡) ▲and suspected transactions with questionable fund procurement outside the permission zone.
If illegal activities are found based on the Real Estate Transaction Reporting Act through the Response Team’s investigation, the relevant district office will be notified to impose fines.
Cases suspected of tax evasion such as disguised gifts and misuse of corporate funds will be reported to the National Tax Service. Cases suspected of illicit loans will be reported to the Financial Services Commission, Financial Supervisory Service, and Ministry of the Interior and Safety.
Kim Younghan, Director of Land Policy at the Ministry of Land, Infrastructure and Transport and head of the Response Team, emphasized, "Due to recent large-scale development plans in Seoul, such as the Jamsil MICE development project and the Yongsan Maintenance Depot housing supply plan, there are concerns about market overheating. We will thoroughly detect speculative and illegal transactions and respond firmly."
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