Where Are Most False Real Estate Reports, Including Under-the-Table Deals? 'Gangnam-gu'

Assemblywoman Yang Kyung-sook Discloses Seoul City Data

It has been revealed that Gangnam-gu is the area where false real estate reports, such as 'down contracts' reported below the actual transaction price, are rampant in Seoul.

According to data received by Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, from the Seoul Metropolitan Government on the 7th, the total number of false real estate reports recorded over the past five years was 583 cases. Among these, Gangnam-gu accounted for the largest proportion. The number of false real estate reports detected in Gangnam-gu was 103 cases, representing 17.7% of the total. In terms of fines imposed, out of a total of 13.83 billion KRW, 3.77 billion KRW was imposed in Gangnam-gu.

False real estate reports refer to cases where the actual transaction price is falsely reported for purposes such as market price manipulation, increasing loan limits, or tax evasion (so-called up/down contracts), as well as cases where the contract date is falsely reported, such as delayed reporting.

Rep. Yang said, "In Yeoksam-dong, Gangnam-gu, a transaction worth approximately 13.57 billion KRW was reported at 15 billion KRW, resulting in a fine of 400 million KRW, but there are still cases where the fine has not been paid."

Seoul apartment panorama [Image source=Yonhap News]

Following Gangnam-gu, Dongjak-gu had the second highest number with 62 cases (2.45 billion KRW), followed by Seodaemun-gu with 43 cases (526 million KRW), Gangseo-gu with 43 cases (550 million KRW), and Songpa-gu with 41 cases (866 million KRW).

Notably, about 25% (146 cases) of the total 583 cases involved the same individual receiving multiple fines. In the past year, there was even a case in Gwanak-gu where the same person was fined nine times for false reporting.

Rep. Yang stated, "False real estate reports are often made with the intention of avoiding or reducing taxes associated with the real estate transaction. Since this behavior harms citizens who honestly trade real estate and disrupts market order, thorough investigations and strong measures to prevent recurrence are necessary."