Busan Nambu Police Station Arrests 25 Union Members in Bulk for Dividing Redevelopment District Occupancy Rights in Nam-gu
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Between September and the end of December 2017, the number of houses in Busan suddenly increased from 16 to 45.
Although it was the same land, the number of houses increased by 29, inflating the premium on the right to move in by a staggering 6.7 billion KRW.
Members of redevelopment district associations in Busan who profited through an ingenious method of splitting unauthorized houses into multiple units to increase move-in rights were caught in large numbers by the police and handed over to the prosecution.
The rumor of so-called ‘ttukkeong jjokkaegi’ (literally ‘lid splitting’), an illegal splitting of move-in rights targeting unauthorized buildings (ttukkeong) in redevelopment districts, was proven true.
The Busan Southern Police Station uncovered 25 association members who secretly divided shares of unauthorized buildings within a redevelopment district in Nam-gu to illegally obtain move-in rights.
On the 17th, the police sent 25 association members, including former association president A from a redevelopment district in Nam-gu, to the prosecution with a recommendation for indictment on charges of embezzling 6.7 billion KRW through the so-called ‘ttukkeong jjokkaegi’ method of splitting move-in rights for unauthorized buildings (violations of the Housing Act’s prohibition on supply order disruption, etc.).
A and others are suspected of splitting 16 buildings into 45 by registering multiple owners such as relatives for a single building.
They exploited the fact that even unauthorized buildings within redevelopment maintenance zones grant apartment move-in rights to owners.
According to the police, they secretly divided ownership shares of one unauthorized building into 3 to 4 owners to increase the number of move-in rights.
The police estimate that A and others gained an unfair profit amounting to 6.7 billion KRW from the 29 forcibly created move-in rights.
It is also known that family members and relatives of former association executives were involved in the splitting of move-in rights.
According to Article 65, Paragraph 1 of the Housing Act, ‘Prohibition of Supply Order Disruption,’ no one shall obtain or cause others to obtain certificates, status, or housing constructed or supplied under this law by false or other fraudulent means.
The police also applied charges of breach of trust, viewing that they infringed on the legitimate property rights of the association. A and others are reported to have denied the charges.
The redevelopment district in question is a large-scale apartment complex site planned for about 4,000 households. It received management disposition approval last year and most residents have already relocated.
However, as rumors circulated that professional brokers were splitting move-in rights targeting unauthorized buildings called ‘ttukkeong,’ calls for investigation were raised.
After receiving intelligence, the Southern Police Station conducted searches targeting the local government in charge, analyzed related materials, and confirmed through property tax, water, and electricity bills that there was no evidence of residence or ownership, resulting in the arrest of 25 people.
A police official said, “We heard rumors of ‘ttukkeong jjokkaegi’ in the Nam-gu redevelopment district and launched an investigation, which after a long inquiry was proven true. We judged this act to be a disturbance to the real estate market and sent the case to prosecution with a recommendation for indictment.”
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