Gyeonggi-do, 391 Individuals Caught for Illegal Activities Including Land Transaction Evasion

Gyeonggi Provincial Government Gwanggyo New Office Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has revealed that it identified 391 illegal actors, including those evading land transaction permits, using the 'Planned Real Estate Continuous Monitoring System' it developed last year.

Gyeonggi Province announced on the 13th that from July last year to January this year, it conducted investigations into 957 suspected speculative transactions involving planned real estate in 16 cities and counties within the province, uncovering 391 illegal actors involved in false reporting of actual real estate transactions and evasion of land transaction permits. Additionally, 206 suspected cases of illegal gifting were reported to the tax office, and 9 cases of evasion of land transaction permits were prosecuted.

The 'Planned Real Estate Continuous Monitoring System' used in this investigation operates by immediately tracking cases that match the province's planned real estate transaction patterns (algorithm), based on real-time transaction data received from the Korea Real Estate Board and others, including factors such as share transactions, land use zones, and transaction frequency over time.

Among the 957 suspicious transactions, the province identified 391 false reporters of actual real estate transactions and imposed fines totaling 350 million KRW. Nine cases of falsely reporting contract dates to evade permits for forest land within designated land transaction permit zones were also reported to investigative agencies. Furthermore, 206 cases involving suspected illegal gifting among family members and unclear transaction amounts were reported to the relevant tax offices for investigation into possible illegal activities such as capital gains tax evasion.

One major case involved Planned Real Estate suspect corporation Co., Ltd. A, which was required to report a forest land sales contract concluded with buyer Mr. B in Hanam City within 30 days in November 2021 but falsely reported the transaction date as February 2022. The province imposed a total fine of 6.4 million KRW on both the seller and buyer.

Mr. C entered into a transaction contract for actual ownership transfer of forest land in Gwangmyeong City, designated as a land transaction permit zone, with Planned Real Estate suspect corporation Co., Ltd. D. However, it was discovered that to evade permits, a mortgage was set up and ownership was transferred after the land transaction permit zone was lifted.

The province operates the 'Planned Real Estate Illegal Activity (Damage) Reporting Center' to eradicate illegal activities related to planned real estate. Fraud damage reports and consultations can be made through Gyeonggi Province's 'Planned Real Estate Illegal Activity (Damage) Reporting Center (031-8008-5357, 5359)'.

Ko Jung-guk, Director of the Land Information Division of the province, stated, "We will continuously track and conduct intensive investigations into planned real estate speculative transactions using illicit methods," adding, "We will strive to establish a fair and transparent transaction order by taking administrative actions and requesting investigations by law enforcement agencies for illegal matters."