Hong Nam-ki: "Multiple Abnormal Transactions of High-Priced Houses Found... Final Results to Be Announced This Month" (Comprehensive)

The 2nd Real Estate Ministers' Meeting... "Completely Block Market Disruptive Acts"
"Strengthen Real Estate Inspection and Response Capabilities in the Seoul Metropolitan Area and Sejong Region"
"Investigate and Criminally Prosecute Disruptive Acts on Online Platforms"
"Shorten Preliminary Procedures for New Public Redevelopment Designations from 18 Months to 6 Months"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks while presiding over the "2nd Real Estate Market Inspection Meeting of Related Ministers" held at the Government Seoul Office Building on the 12th.

[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 identified, and we are currently reviewing whether these constitute illegal activities." He added, "We plan to announce the final results within this month and proceed with notifying the National Tax Service and imposing 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 will 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 also decided to 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, we are conducting joint special inspections based on the revised Licensed Real Estate Agents Act enacted in February this year." He added, "For suspicious cases, we will initiate preliminary investigations and take criminal prosecution measures." The revised Licensed Real Estate Agents Act prohibits acts that affect market prices and acts that restrict or induce brokerage requests to specific licensed real estate agents. Violations are punishable by imprisonment of up to three years or fines of up to 30 million won.

Deputy Prime Minister Hong expressed, "We will continue to actively detect and respond to new types of disruptive activities," and stated, "If we find that the regulations for responding to disruptive activities such as price manipulation and collusion in housing prices are insufficient, we will actively consider improvements to related systems."

During the meeting, progress on follow-up measures for real estate supply and demand policies was also reviewed. Deputy Prime Minister Hong said, "For public participation-type high-density reconstruction, since the 10th, we have been actively supporting applicant associations with business feasibility analysis and free consulting through the 'Public Maintenance Project Revitalization TF' jointly operated by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government, striving to discover leading project sites within August and September." Regarding public redevelopment, a considerable number of associations are expressing interest, and the government plans to expedite consultations and progress by shortening preliminary procedures for new designations (from 18 months to 6 months) and simplifying project implementation approval procedures.

He added, "For individual sites such as the Seoul Regional Procurement Office site, detailed development plans will be prepared and managed for each site, and prompt consultations on preliminary tasks will be conducted," emphasizing, "Through weekly inspections, management, and resolution of difficulties, we will accelerate efforts to achieve results in the plan to supply 132,000 new housing units in the Seoul metropolitan area."

Meanwhile, Deputy Prime Minister Hong referred to the 'Korea Economic Report' released by the Organisation for Economic Co-operation and Development (OECD), stating, "It confirmed that Korea is highly evaluated from two perspectives: overcoming the crisis and policy response amid the global COVID-19 pandemic." He assessed, "This is very encouraging as it reflects the international community's balanced view of the Korean economy." He concluded by emphasizing, "While maintaining vigilance regarding the severity of the economy, we will devote all policy capabilities and make every effort to achieve economic recovery and rebound in the second half of the year."