2140 Arrested in Special Crackdown from August to November
Police: "There Are Professional Brokers and Speculative Forces"
9 Regional Police Intelligence Crime Investigation Units Lead Investigation
Criticism That "Government Shifts Blame for Policy Failures"
[Asia Economy Reporter Lee Gwan-joo] The police, who have been cracking down on disruptive activities in the real estate market, are now focusing on illegal activities in the 'apartment pre-sale market' and launching a large-scale crackdown. While investigations into clear illegal acts are natural, criticism is expected that the government is trying to control the market solely through regulation and crackdowns rather than policy solutions amid growing public distrust of government real estate policies.
The National Police Agency announced on the 6th that starting from the 7th of this month, it will push forward with crackdowns on illegal activities in the apartment pre-sale market, such as fraudulent subscription and illegal resale of pre-sale rights.
From August to mid-November, the police conducted a 'special crackdown on disruptive activities in the real estate market,' arresting 2,140 people. Among them, nearly half (1,002 people, 46.8%) were involved in illegal activities related to apartment pre-sales, including subscription account trading, fraudulent subscriptions, and illegal resale. The police explained the background of the crackdown, stating, "It has been confirmed that professional brokers and real estate agents aiming for price differences are promoting real estate speculation through illegal resale of pre-sale rights."
The police plan to focus their crackdown on organized and corporatized illegal activities mainly in speculative overheated districts and regulated areas designated by the Ministry of Land, Infrastructure and Transport. First, the intelligent crime investigation units of nine local police agencies?Seoul, Southern Gyeonggi, Northern Gyeonggi, Incheon, Busan, Daegu, Daejeon, Sejong, and Chungbuk?will be responsible for investigating large-scale and organized illegal activities involving professional brokers.
Additionally, the police will actively recover criminal proceeds and apply obstruction of business charges to fraudulent apartment subscription acts to confiscate or secure criminal proceeds. Investigation results will be reported to local governments and the National Tax Service to enable imposition of fines or tax collection.
However, there is expected to be considerable backlash against the active deployment of investigative agencies in real estate market issues. Online communities related to the crackdown have voiced criticism that the 'real estate disaster' caused by the government's policy failures is being blamed on individuals. While crackdowns on illegal activities are natural, some argue that since these represent only a portion of the problem, they cannot be a fundamental solution to stabilizing the real estate market.
A National Police Agency official said, "Through this crackdown, we will restore order in the real estate market and continue to crack down to eradicate speculative demand," adding, "Please do not fall for the temptations of real estate speculation forces and actively report and tip off illegal activities in the apartment pre-sale market."
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