Gyeonggi Special Judicial Police Conduct Intensive Investigation into Illegal Brokerage Activities by Real Estate Agents Involved in Jeonse Fraud

Gyeonggi Provincial Government Gwanggyo New Office Building

Gyeonggi Province recently announced it will intensify crackdowns on illegal activities by licensed real estate agents amid the rise of organized and sophisticated jeonse frauds such as 'Kkangtong Jeonse' (Empty Can Jeonse).

The Gyeonggi Province Fair Special Judicial Police Unit stated on the 8th that from this month until the end of the year, it will conduct focused investigations into illegal brokerage activities by real estate agents involved in jeonse fraud.

The main investigation targets include ▲false or exaggerated advertisements suspected of jeonse fraud ▲false brokerage explanations by agents involved in jeonse fraud ▲unregistered brokerage activities related to lease transactions (jeonse and monthly rent) by developers, brokerage assistants, consultants, etc. ▲receiving rebates beyond brokerage fees after contracts, such as inflating jeonse prices. These acts violate the Licensed Real Estate Agents Act and, if caught, offenders face imprisonment of up to one year or fines up to 10 million KRW.

The Fair Special Judicial Police Unit will prioritize investigations in densely populated multi-family and row house areas in the province where Kkangtong Jeonse is a concern. They will conduct special joint inspections with the Land Information Division of the Urban Housing Office on contracts brokered by licensed agents involved in guarantee accidents reported by the Housing and Urban Guarantee Corporation (HUG) over the past two years in 10 cities and counties including Bucheon.

Additionally, a cooperative investigation system has been established with the Ministry of Land, Infrastructure and Transport’s Real Estate Consumer Protection Planning Team to receive analysis data on real estate agents suspected of involvement in jeonse fraud transactions and initiate investigations.

False and exaggerated real estate advertisements conducted online by unqualified persons such as sales agencies and brokerage assistants, including those offering loan interest or moving cost support related to lease brokerage properties, will also be continuously monitored.

Kim Kwang-deok, head of the Gyeonggi Province Fair Special Judicial Police Unit, emphasized, "Licensed real estate agents have the responsibility to create a safe transaction environment, but instead, they are involved in jeonse fraud crimes, raising particular concerns for young people and newlyweds. We will strengthen the accountability of real estate agents through strict investigations and establish a transaction order that residents can trust."

Related reports can be submitted via the Special Judicial Police Unit’s website, KakaoTalk channel (Gyeonggi Province Fair Special Judicial Police Unit), or the Gyeonggi Province call center (031-120).

Meanwhile, Kkangtong Jeonse refers to jeonse properties where the deposit exceeds the difference between the house price and debts, risking the loss of the jeonse deposit if the property goes to auction.

It can occur regardless of the landlord’s intentions due to falling real estate prices, and such 'Kkangtong Jeonse' listings can become targets of jeonse fraud aimed at vulnerable low-income residents and young adults who invest their entire savings as jeonse deposits, so caution is necessary.