Bucheon City Launches Special Investigation into 60 Auctioned Properties to Prevent Rental Deposit Fraud

Bucheon City in Gyeonggi Province announced on January 13 that it will conduct a special investigation to check for unreported acquisition taxes and unregistered transfers of ownership for real estate properties acquired through auction.

This investigation is being carried out due to concerns that, following an auction, failing to report and pay acquisition taxes and entering into lease agreements while the property remains unregistered could be exploited for rental deposit fraud.

Bucheon City Hall exterior. Provided by Bucheon City

Since November of last year, the city has conducted a two-month preliminary investigation, comparing and analyzing court auction data with local tax records to identify properties and taxpayers who may have omitted acquisition tax payments.

The investigation will cover approximately 60 auctioned properties within the region, involving nine corporations, including those that have closed down. The city and district tax departments plan to collaborate systematically on the investigation through April.

In addition, the city will calculate the accurate tax base for acquisition taxes and impose the taxes following due legal procedures, such as prior tax notifications. In cases of delinquency, swift collection measures will also be taken in accordance with relevant laws.

A Bucheon City official stated, "The purpose of this special investigation is to prevent tax evasion and uncover hidden tax sources, as well as to prevent rental deposit fraud that exploits unregistered real estate. We will continue to establish a fair taxation system through ongoing monitoring of similar cases."