[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 151 individuals involved in illegal speculation, including illegal speculators who illegally sold or leased public rental housing prohibited from sale or sublease for profit, real estate agents, and those violating residency qualifications. The amount speculated by them reached 48.4 billion KRW.
The Gyeonggi Province Special Judicial Police Unit announced that since December last year, it has conducted a planned investigation into illegal sales, leases, and violations of residency qualifications related to public rental housing throughout the province, uncovering 81 illegal actors and 70 illegal real estate agents.
This is the first time a local government special judicial police unit has investigated illegal activities related to public rental housing in Gyeonggi Province.
The investigation targeted public rental housing in seven new towns: Seongnam Pangyo, Suwon Gwanggyo and Seryu, Hwaseong Dongtan, Hanam Misa, Paju Unjeong, Goyang Wonheung, and Yangju Okjeong.
One major case involved Mr. A, who lived as a tenant in public rental housing in Paju Unjeong and, in collusion with a licensed real estate agent, illegally sold the rental housing before the conversion to ownership, which is prohibited, to gain a price difference profit.
Mr. A lived in a Korea Land and Housing Corporation (LH) public rental housing that converts to ownership after 10 years of residence, but in the ninth year, he illegally sold the apartment for 400 million KRW. The conversion price was fixed at 230 million KRW, so Mr. A gained an illegal price difference profit of 170 million KRW.
The real estate agent Mr. B, who brokered this contract, is accused of brokering a total of seven illegal sales or leases of public rental housing, including Mr. A’s case.
Mr. B facilitated seven contracts over three months, providing 1.36 billion KRW of unearned income to seven people including Mr. A, and received 8.3 million KRW in brokerage fees.
Mr. C, who lived as a tenant in Seongnam Pangyo public rental housing with a deposit of 280 million KRW, colluded with real estate agent Mr. D to sign a lease contract for an apartment where leasing was prohibited, with a tenant paying a deposit of 250 million KRW and monthly rent of 2.65 million KRW (equivalent to a jeonse of about 1.52 billion KRW). It was also revealed that Mr. C set a mortgage on another apartment he owned to secure the tenant’s deposit of 250 million KRW for this lease contract.
The special judicial police unit uncovered 70 illegal real estate agents and 69 illegal sellers who brokered or conducted sales or leases of properties prohibited from sale or lease using such methods. The total speculation amount is 48.4 billion KRW. According to the current Public Housing Special Act and the Licensed Real Estate Agents Act, illegal sale, lease, or brokerage of public rental housing is punishable by up to three years imprisonment or a fine of up to 30 million KRW.
Tenant Mr. E, residing in Hwaseong Dongtan public rental housing (Happy Housing), was selected under the youth qualification requiring a single-person household but violated residency conditions by living with an unqualified cohabitant from move-in and owning a high-priced imported car under the cohabitant’s name, violating the vehicle value limit of 34.96 million KRW.
Another tenant Mr. F, also residing there, met youth qualifications on paper by not owning a vehicle but was found to illegally reside by actually owning and driving a luxury imported car registered under his parents’ name and even registering the vehicle for parking at the public rental housing.
Kim Young-soo, head of the Gyeonggi Province Fair Special Judicial Police Unit, said, "We are conducting investigations to ensure strong punishment is enforced," and added, "We plan to expand investigations into public rental housing going forward."
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