Suncheon-si Faces Controversy Over 'Favoritism and Illegality' in Sale of Ordinance Daegwang Apartment Developer-Owned Units

Company-Owned Unit Sales Must Be Revealed Through Full Investigation... Allegations of Violations of the Real Estate Transaction Reporting Act Raised

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] Since late 2018, when the Daekwang Rojeviang Bonghwasan Apartments in Jorye-dong, Suncheon-si, Jeollanam-do, were nearing completion, controversy over preferential treatment has arisen in the process of handling 25 units owned by the company (unsold apartments, etc.). In particular, the fact that the apartments were sold to specific individuals without prior consultation with Suncheon City, and the developer's ethical awareness such as prioritizing supply to non-homeowners, has drawn criticism from the local community.

The developer, Samdeok Construction, is a local company based in Suncheon, and citizens are demanding clear disclosure of any connections with those who purchased the apartments.

According to Suncheon City on the 6th, the Daekwang Rojeviang Bonghwasan Apartments in Jorye-dong, Suncheon-si, which attracted popularity with a price of around 6 million KRW per 3.3㎡ in November 2015, drew much attention with over 30,000 visitors to the model house.

However, as it became known that journalist A, active in the region, among others, purchased units owned by the company, the atmosphere for preferential treatment controversy is spreading.

The apartments purchased by Mr. A and others at the end of 2018 had premiums worth tens of millions of KRW.

Therefore, suspicions have been raised that they obtained undue profits amounting to those premiums worth tens of millions of KRW.

Additionally, claims have been made that there may be violations of the Real Estate Transaction Reporting Act.

B, who works in real estate brokerage, said, "I recall that in 2018, C Real Estate in Jorye-dong almost exclusively brokered the unsold units of the apartments," adding, "At that time, premiums were formed, but I think the actual transaction reports were not properly filed."

In other words, if the real estate agency conducted transactions with premiums but reported the prices as the original sale price, it would be a violation of related laws and also suggest tax evasion.

In response, a Suncheon City official said, "At that time, there was no legal obligation to obtain city approval or report sales for unsold apartments. Since there was no public recruitment, we were unaware," adding, "However, if premiums were formed, violations of the Real Estate Transaction Reporting Act should be separately reviewed."

Meanwhile, on March 12, the Shindae Jungheung S-Class 5th phase, known for its lottery sale, recruited 27 vacant units for general subscription and received 19,059 applications, recording an average competition rate of 706 to 1, showing a contrasting situation to the current controversy.