Pohang City, Full Effort for Preemptive Response to Prevent Jeonse Fraud 피해

Real Estate Special Transaction Investigation Team, Notaries, and Licensed Realtors Joint Response

Concentrated Administrative Efforts on Real Estate Market Monitoring, Promotion, and Legal Consultation

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Pohang City is actively taking preemptive measures to prevent real estate lease fraud, which has been rampant recently in the Seoul metropolitan area.

Pohang City Hall.

The city announced on the 6th that, amid the government's ongoing efforts to devise support measures for the lease fraud crisis triggered by the Villa King incident, it will focus administrative efforts on fundamentally blocking illegal activities such as lease fraud by deploying a Special Real Estate Transaction Investigation Team to proactively respond and protect the property rights of Pohang citizens.

Although there have been no reported cases of damage caused by lease fraud in the region so far, Pohang's jeonse rate (lease price compared to sale price) is among the highest nationwide, raising concerns about "empty jeonse" and other lease frauds. Therefore, the city has started preparing countermeasures to prevent damage.

To this end, the city plans to establish an organic cooperation system with related organizations such as the local Notary Association and the Licensed Real Estate Agents Association, and jointly respond to ▲real estate market monitoring ▲licensed real estate agent education ▲crackdown on unregistered brokers and real estate consulting firms ▲promotion of lease fraud prevention ▲legal counseling related to lease fraud.

A city official said, "During the real estate boom, contracts with high jeonse rates increased, and as the lease terms of high-priced jeonse properties come due, concerns about lease fraud damage are growing. We will continuously monitor the situation and respond promptly if any issues arise to prevent real estate lease fraud."

Pohang City has been operating the Special Real Estate Transaction Investigation Team since November 2021, and conducted a full investigation targeting overheated new apartment sale districts until the first half of last year, detecting 115 cases of illegal transactions and taking criminal prosecution and administrative actions.