Province Conducts Survey on 167 Registered Real Estate Development Businesses
16 Businesses Cancelled for Registration Non-Compliance, 33 Fined for Failure to Report Changes
Province Proposes System Improvements to Ministry of Land, Infrastructure and Transport for Compliance Enforcement
Gyeonggi Province announced on the 27th that, as a result of a selective investigation of 167 businesses out of 674 registered real estate development operators in Gyeonggi Province from August to October, 50 companies were found to have violated the Real Estate Development Business Act by not operating offices or failing to report changes in registration details.
During the investigation period, the province guided 14 companies to voluntarily close their real estate development businesses, and plans to cancel the registration of 16 companies confirmed to be not operating offices or lacking professional personnel. A total fine of 11 million KRW will be imposed on 33 companies that failed to report changes in registration details.
The real estate development business registration system was introduced in 2007 to prevent consumer damage in real estate transactions such as sales and leasing. Registration is required when developing and supplying real estate above a certain scale (building total floor area of 3,000㎡ or annual 5,000㎡ / land area of 5,000㎡ or annual 10,000㎡).
Registered real estate development businesses must meet registration requirements such as having at least two full-time professional personnel, a corporate capital of at least 300 million KRW, and securing an office. Failure to meet these requirements results in cancellation of registration. Registered companies must report any changes in registration details (representative, executives, location, professional personnel, etc.) to the province through the Real Estate Development Association within 30 days from the date of change, and must report business performance to the province through the association by April 10 every year.
Meanwhile, the number of registered real estate development businesses in Gyeonggi Province has sharply decreased each year: 770 in 2022, 743 in 2023, and 674 in 2024. This is due to the downturn in the real estate market. To reduce the burden on real estate developers, the province limited the 2024 survey targets to 167 companies that did not respond to the 2023 survey and conducted inspections accordingly.
Additionally, on the 22nd, the province proposed to the Ministry of Land, Infrastructure and Transport an improvement plan that specifically regulates who and how to report real estate development business performance, to prevent registered businesses from receiving fines due to misunderstandings of the law.
Ko Jung-guk, Director of the Land Information Division of Gyeonggi Province, said, “Through the field survey, we will actively promote institutional improvements to prevent consumer damage related to real estate development businesses while revitalizing the real estate development industry.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
