Prosecutors Indict Group for 'Real Estate Brokerage Collusion'... First Case Since New Penalty Clause Enacted

[Asia Economy Reporter Lee Jung-yoon] A group that organized collectively to collude in real estate brokerage has been brought to trial. They are the first to be prosecuted since the introduction of the penalty clause for real estate brokerage collusion.

The Seoul Eastern District Prosecutors' Office Fair Trade and Economic Crime Division (Chief Prosecutor Min Kyung-ho) announced on the 21st that Mr. A (65), the president of a real estate agent association related to an apartment in Songpa-gu, Seoul, was indicted without detention on charges of violating the Real Estate Agent Act and the Personal Information Protection Act.

Additionally, Mr. B (55), president of another real estate agent association located in Songpa-gu, was indicted without detention on charges of violating the Real Estate Agent Act, and police officer Mr. C (59), who leaked investigation information after receiving a request from Mr. B, was indicted without detention on charges of official secret leakage. Furthermore, seven real estate agents who actively participated in the associations of Mr. A and Mr. B were also indicted on charges of violating the Real Estate Agent Act.

According to the prosecution, Mr. A is accused of organizing an association consisting of about 70 real estate agents, refusing joint brokerage requests from non-members, and imposing fines on members who violated the association's rules, thereby disrupting fair trade order in real estate. He is also accused of receiving a personal information file containing about 7,000 entries of apartment owners' names, addresses, and contact information, and using it for business purposes.

Mr. B, who organized an association of about ten real estate agents, is accused of repeatedly urging members not to conduct joint brokerage with non-members and blocking non-members' access to the joint brokerage network.

Mr. C was brought to trial for leaking investigation information after receiving a request from Mr. B, who was under investigation for violating the Real Estate Agent Act.

The prosecution explained that real estate brokerage collusion cases are serious crimes that unfairly exclude non-member real estate agents who cannot newly enter the market or pay high association fees from competition, thereby disrupting fair trade order in the real estate market and causing consumers to bear high brokerage fees, leading to increased real estate transaction costs.

This case was initially sent with a no-charge opinion, but the prosecution uncovered the full extent of the long-term organized real estate brokerage collusion case through multifaceted supplementary investigations. This is the first prosecution case since the new penalty clause for real estate brokerage collusion was established in the Real Estate Agent Act in February last year. The real estate brokerage collusion organizations are known to operate in a closed and exclusive manner, making evidence collection difficult.