An Apartment Listed at 200 Million KRW Sold at Auction for 1.6 Billion KRW... "Did They Add an Extra Zero?" Suspected Input Error

An apartment complex in Seoul. The photo is not directly related to any specific expression in the article.

[Asia Economy Reporter Seoyoung Kwon] An apartment in Muan, Jeonnam, was sold at a real estate auction for ten times its market price, leading to speculation that it might have been a case of 'bid sheet misentry.'

According to Gigi Auction on the 23rd, on the 18th at the Mokpo branch of the Gwangju District Court, an apartment in Geunhwa Beachae, Muan-gun, Jeonnam, with a net area of 59㎡ (4th floor), was sold at an appraised value of 1.6458 billion KRW. This amount is about ten times the minimum bid price of 164 million KRW. Apartments of the same size in this complex were traded for up to 200 million KRW earlier that month, and the current asking price is also around 200 million KRW.

Industry insiders are diagnosing that the winning bidder likely made an error in entering the bid price. Since the auction process is conducted manually, mistakes such as adding an extra zero to the bid price occasionally occur. According to Gigi Auction, there have been 24 cases this year where the winning bid exceeded 1000% of the appraised value, most of which were due to bid misentries.

Previously, in May, an 86㎡ apartment in Samsung Cheongdam Apartments, Cheongdam-dong, Gangnam-gu, was sold at 12.6 billion KRW, ten times the appraised value of 1.26 billion KRW. The winning bidder ultimately failed to pay the balance, leading to a re-auction of the apartment, which was sold three months later for 1.38699 billion KRW.

Also, in 2020, a 139㎡ apartment in Seogang Apartment 2nd Complex, Hong Eun-dong, Seoul, was sold for 4.139 billion KRW. It was reported that the bidder made a mistake by adding an extra zero. The bidder applied to the court to reject the sale, but the request was dismissed. Eventually, the bidder forfeited the bid deposit of 36.2 million KRW (10% of the minimum bid price) and abandoned the balance payment, effectively giving up on the auction.

In the past, if a bidder made a price entry error, the court would accept it and recognize the rejection of the sale as a form of relief. However, since the Supreme Court ruling in 2010 that bid sheet misentries are not grounds for sale rejection, practically, cancellation of the sale is only possible by forfeiting the deposit equivalent to 10% of the minimum bid price and failing to pay the balance.