512 Cases in the Second Half of Last Year, 505 Cases in the First Half of This Year
819 Delay Reports Are the Most Frequent
Seoul City announced on the 12th that it has detected 1,017 cases of illegal activities such as false or delayed reporting in real estate transactions over the past year and imposed fines totaling 4 billion KRW.
In the second half of last year (July to December), a continuous investigation was conducted on about 6,000 cases, detecting 512 violations and imposing fines of 2.9 billion KRW. In the first half of this year (January to June), about 3,000 cases were investigated, 505 violations were detected, and fines of approximately 1.1 billion KRW were imposed.
The most common type of violation was "delayed reporting," with 819 cases. When a real estate transaction is concluded, the transaction information must be reported to the relevant local government within 30 days from the contract date; failure to comply constitutes a violation. This was followed by non-reporting or false submission of documents (145 cases) and false reporting of transaction prices (53 cases).
In addition to imposing fines for illegal activities, 3,019 cases suspected of tax evasion related to capital gains tax and gift tax, such as disguised gifts between related parties and loan transactions, were reported to the National Tax Service.
At the same time, to block so-called false contracts aimed at inflating housing prices, the city is notifying the National Tax Service in bulk about transaction records that were canceled after reporting, so that income tax and other taxes on penalties can be imposed on sellers and buyers.
The city utilized its self-developed "Real Estate Trend Analysis System" for this investigation. Through this system, suspicious transaction reports were identified, and then contract parties were required to submit documents such as contract dates, transaction amounts, and funding plans for focused investigations. The Real Estate Trend Analysis System collects transaction status data, analyzes statistics, and determines whether transactions are appropriate.
Cho Nam-jun, Director of the Urban Space Headquarters of Seoul City, stated, "We will continue to monitor transaction reports regularly and rigorously investigate abnormal transactions," adding, "We will block market-disturbing acts that undermine the order of real estate market transactions and establish a sound and transparent real estate transaction order centered on actual demand."
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