"Licensed Real Estate Agent's Unqualified Assistant Signs Transaction Contract During Overseas Trip... Caught by Seoul City"

Citizen Life Judicial Police Unit, Cross-Checking Immigration Records and Transaction Details, Catches 14 People in Gangnam 4 Districts
26 People Criminally Charged for Certificate Lending, Unqualified Brokerage, and Excessive Fees

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[Asia Economy Reporter Jo In-kyung] Real estate agencies were caught by the Seoul Metropolitan Government’s Civil Affairs Judicial Police Unit for illegal brokerage activities, where licensed real estate agents abroad were impersonated by unqualified brokerage assistants or licensed agents belonging to the agency.

The Seoul Civil Affairs Judicial Police Unit announced on the 22nd that, after investigating licensed real estate agents who had traveled abroad in four autonomous districts?Gangnam, Seocho, Songpa, and Gangdong?they criminally charged a total of 14 people, including licensed agents and brokerage assistants from eight agencies.

The investigation revealed that while the licensed real estate agents responsible for brokerage were abroad for reasons such as overseas travel, brokerage assistants signed documents and stamped seals on their behalf to conduct brokerage activities.

Focusing on the fact that legitimate real estate transaction contracts cannot be concluded while the licensed agents are abroad, the Civil Affairs Judicial Police Unit conducted its first planned investigation from July to September. They examined immigration records since 2018 and transaction reports submitted to each district office during the relevant periods.

Additionally, the Civil Affairs Judicial Police Unit criminally charged 26 individuals who disrupted the real estate market by violating the Licensed Real Estate Agents Act through unregistered or unqualified brokerage, certificate lending, use of similar names, and excessive brokerage fees.

These included 16 people who conducted brokerage without registration by borrowing office registration certificates, 7 who impersonated licensed agents by listing titles such as "Licensed Real Estate Agent," "Representative," or "President" on business cards despite being unqualified brokerage assistants and engaged in illegal brokerage such as fee splitting, 2 who advertised brokerage properties without qualifications, and 1 who charged fees exceeding the legal brokerage commission.

Violations related to real estate brokerage are punishable under the Licensed Real Estate Agents Act by imprisonment of up to three years or fines up to 30 million KRW, or imprisonment of up to one year or fines up to 10 million KRW.

Starting next year, Seoul City plans to expand investigations across the entire city into illegal real estate brokerage activities conducted during licensed agents’ overseas stays. Furthermore, until the real estate market stabilizes, broad investigations will be conducted into price distortions by specific groups, self-dealing transactions, and interference with licensed agents’ brokerage activities.

The main investigation targets include ▲ sellers falsely contracting at high actual transaction prices to raise market prices and then canceling contracts or fabricating completed transactions to report false deals (so-called "self-dealing transactions"), ▲ restricting brokerage requests to specific licensed agents, and ▲ inducing brokerage requests not to be made below certain prices through notices or online communities.

Park Jae-yong, head of the Seoul Civil Affairs Judicial Police Unit, advised, "To reduce damage caused by illegal real estate brokerage, it is important to verify whether a licensed real estate agent is handling the transaction, and to carefully compare the photos of the licensed agent’s certificate or office registration certificate posted at the agency with the person conducting the brokerage."

Meanwhile, the Seoul Civil Affairs Judicial Police Unit operates an app (Seoul Smart Complaint Report) that allows anyone to easily and conveniently report civil crimes anytime using a smartphone. Reports and tips are also accepted via the Seoul City website, 120 Dasan Call Center, visits, mail, and fax.