The Gyeonggi Provincial Government, in cooperation with all 31 cities and counties in the province, will conduct a joint special investigation from September to December to strengthen transparency in real estate transactions by targeting false reports and illegal brokerage activities.
This special investigation will focus on 1,838 suspicious transactions among the transaction reports received in the first half of this year.
The main items under investigation include: ▲“Up/down contracts” intended to evade taxes or increase loan limits; ▲false reports in which a transaction is reported at a higher price than the actual market value and then canceled without a real transaction; ▲cases that appear to be direct transactions but are suspected to involve unqualified individuals or illegal involvement by licensed real estate agents.
In particular, the Gyeonggi Provincial Government plans to thoroughly review the sources of funds listed in the funding plans submitted during housing transaction reports.
The investigation will focus on minors who have acquired homes valued at 300 million won or more, individuals under the age of 30 who have purchased high-priced homes exceeding 900 million won, and cases where transactions were completed with other borrowings instead of loans.
Transaction parties will be required to submit supporting documents for verification. If the documents are insufficient or not submitted, in-person investigations will also be conducted. In addition, if the submitted documents significantly differ from market prices or are suspected of tax evasion, the National Tax Service and the relevant tax office will be notified immediately.
If violations of relevant laws are confirmed through the special investigation, a fine of up to 10% of the actual transaction amount (maximum of 30 million won) will be imposed, and a tax investigation will be conducted. Furthermore, if illegal brokerage activities by unqualified individuals or violations by licensed real estate agents are discovered, the cases will be reported to law enforcement agencies without exception.
In the first half of this year, the Gyeonggi Provincial Government identified 97 violators of real estate transaction reporting regulations, imposed a total of approximately 232 million won in fines, and notified the National Tax Service of 324 suspicious transactions, requesting tax investigations.
Son Imseong, Director of Urban Housing at the Gyeonggi Provincial Government, stated, “We will uncover all false reports and illegal activities that disrupt order in real estate transactions,” adding, “Through this special investigation in the second half of the year, we will establish a fair and transparent order in the real estate market.”
Meanwhile, the Gyeonggi Provincial Government offers a reward of up to 10 million won to informants who report illegal real estate transactions. Reports can be submitted to the real estate transaction reporting department of the city, county, or district where the violation occurred.
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