'Boosting Actual Transaction Prices'... Prosecution's Strict Investigation on Real Estate Market Manipulation

[Asia Economy Reporter Baek Kyunghwan] The prosecution has decided to impose severe punishments on offenders disrupting the real estate market order. They plan to conduct intensive investigations, including reviewing cases of violations of the Licensed Real Estate Agents Act, centered on the nationwide prosecution offices' dedicated investigation teams for real estate speculation offenders.

On the 25th, the Supreme Prosecutors' Office announced that it instructed all prosecution offices nationwide to thoroughly investigate and strictly punish offenders disrupting the real estate market order, such as 'inflating actual transaction prices.'

Specifically, they ordered the use of various methods, including reviewing related cases such as violations of the Licensed Real Estate Agents Act disposed of in the past five years. This measure came after government investigations uncovered cases of 'inflating actual transaction prices' by manipulating market prices through false transaction reports. Minister of Justice Park Beom-gye also stated, "Since public outrage is very high, strict investigations should be conducted."

Earlier, in March, the Supreme Prosecutors' Office established the 'Real Estate Speculation Offenders Investigation Cooperation Group' and formed dedicated investigation teams in 43 prosecution offices nationwide to conduct focused investigations. In particular, through direct investigations, they identified a nationwide illegal multi-level marketing real estate company chairman and others who purchased land with no development potential at low prices, then deceived buyers by inflating the investment value three to six times and sold it. A total of 79 suspects were identified, with 16 arrested. Measures to preserve criminal proceeds amounting to 28.2 billion KRW were also completed.

In cooperation with the police, they arrested a total of 37 real estate speculation offenders, including two current employees of Korea Land and Housing Corporation (LH), known as 'Gang Sajang,' who used insider information, and took measures to preserve criminal proceeds amounting to 79.3 billion KRW. Additionally, by mobilizing all investigative intelligence capabilities of the Supreme Prosecutors' Office, they collected intelligence on 28 cases involving 110 people related to real estate speculation. Among them, the prosecution is directly investigating 5 cases involving 35 people. The remaining 23 cases involving 75 people were transferred to the National Investigation Headquarters.

A representative of the Supreme Prosecutors' Office stated, "Going forward, we will uphold a zero-tolerance principle against real estate speculation offenders who disrupt the national economy and cause a sense of loss among ordinary citizens, and we will concentrate all our capabilities to eradicate them."