Gyeonggi-do Launches Special Investigation into Suspected False Real Estate Transaction Reports

Gyeonggi Province will conduct a joint special investigation with city and county governments on suspected false real estate transaction reports and illegal brokerage activities across the province from April to June.

The investigation targets a total of 1,736 cases reported between July and December of last year, including suspected tax evasion, 'up-down contracts' reported to increase housing mortgage loan limits, false transaction reports, and other suspicious false reporting cases.

In this investigation, Gyeonggi Province will focus on ▲ minors acquiring houses worth over 300 million KRW ▲ individuals under 30 years old purchasing high-priced houses exceeding 900 million KRW ▲ transactions conducted without loans but through other borrowings.

If unqualified persons or licensed real estate agents are found engaging in illegal activities during the investigation, administrative actions and reports to investigative agencies will be taken. In cases with strong suspicion of tax evasion such as capital gains tax or gift tax, the National Tax Service will be notified.

Gyeonggi Provincial Government

Those who submit false explanatory materials or report false contracts may be fined up to 30 million KRW, and those who falsely report transaction prices or other details may be fined up to 10% of the actual real estate transaction amount and may be subject to tax audits.

Over the past four years, Gyeonggi Province has identified 1,360 violators of real estate transaction reporting through special investigations, imposed fines totaling approximately 7.04 billion KRW, and requested tax audits from the National Tax Service for 2,427 suspicious cases involving tax evasion.

Individuals who report illegal real estate transactions will receive a reward of up to 10 million KRW. Reports can be made to the real estate management departments of the city, county, or district where the violating property is located, including false contract reports without actual monetary transactions or false real estate transaction prices.

Son Im-seong, Director of the Gyeonggi Province Urban Housing Office, stated, "To stabilize the real estate market, it is essential to detect illegal and unfair activities that disrupt the order of real estate transactions and establish transparent transaction order. We plan to thoroughly block illegal activities through periodic special investigations in cooperation with 31 cities and counties."