Hong Nam-ki: "Numerous Abnormal Real Estate Transactions Occurring, Penalty Imposition Planned... Strengthened Inspections in the Seoul Metropolitan Area and Sejong" (Update)

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 12th, "As a result of the investigation into actual transactions of high-priced houses reported earlier this year, numerous suspicious cases of abnormal transactions have been extracted, and we are currently reviewing whether these constitute illegal activities. The final results will be announced within this month, and we plan to notify the National Tax Service and impose fines."

Deputy Prime Minister Hong made these remarks while presiding over the 2nd Real Estate Market Inspection Meeting with related ministers held at the Government Seoul Office, discussing measures to block disruptive activities in the real estate market.

He mentioned, "In the planned investigations of major overheated areas in the metropolitan area that began in June, many abnormal transactions have also been confirmed, and we plan to accelerate the investigation by requesting explanatory materials."

In particular, he emphasized, "For the metropolitan area and Sejong region, which are showing signs of overheating, we plan to further strengthen the inspection and response capabilities through the Police Agency's '100-day Special Crackdown' and the National Tax Service's 'Real Estate Transaction Evasion Response Task Force (TF),' which have been ongoing since the 7th."

The government will also strengthen its response to disruptive activities on online platforms, which have recently raised concerns. Deputy Prime Minister Hong explained, "Regarding disruptive activities on online platforms, joint special inspections are underway based on the revised Licensed Real Estate Agents Act as of February this year. Suspicious cases will be subject to preliminary investigations and criminal charges."

He added, "We will continue to actively detect and respond to new types of disruptive activities. If we determine that the regulations for responding to disruptive acts such as price manipulation and collusion in housing prices are insufficient, we will actively consider improvements to related systems."

In conclusion, Deputy Prime Minister Hong stated, "This time, through firm policy determination, we will restore market confidence in price stability and improve the housing market structure centered on actual demand, making every effort to break the current vicious cycle in the real estate market."