Seoul to Launch Intensive Probe into Real Estate Market Disruption from Collusion and False Reports...Whistleblowers to Receive up to 200 Million Won

Focused Reporting Period for Real Estate Price Collusion Until Late June
60 Cases Detected and Booked Last Year
Investigation to Center on Apartment-Dense Areas in Gangnam, Seocho, and Songpa

An apartment-dense area in downtown Seoul. Yonhap News

The Seoul Metropolitan Government announced on February 23 that it will launch an intensive investigation into acts that disrupt order in real estate transactions, such as artificial collusion on housing prices and filing false transaction reports. It will also operate a "Focused Reporting Period for Real Estate Price Collusion" through the end of June.

The city decided to begin the investigation after collusive practices emerged in a situation where Seoul apartment sale prices have been rising for 53 consecutive weeks, including acts that prevent properties from being listed below a certain price. The aim is to reduce damage to citizens who are trying to purchase homes for actual residence. Citizens who report criminal acts along with decisive evidence proving the allegations, such as screen captures, and thereby contribute to the public interest, may receive a reward of up to 200 million won after review.

The investigation will focus on acts such as forcing prices to be listed or advertised significantly higher than the market price, and refusing co-brokerage if a broker is not a member of a particular licensed real estate agent association. In addition, it will cover acts in which people use online communities to induce others not to list properties below a certain price, as well as listing or advertising properties that are not actually for sale or rent for the purpose of unfairly driving up market prices.

This investigation will mainly target areas with a high concentration of large apartment complexes, such as Gangnam-gu, Seocho-gu, and Songpa-gu, where there have been many civil complaints and reports related to housing price collusion. If necessary, the city plans to expand the scope of the investigation to other districts.

Previously, in July 2024, the city uncovered, for the first time in Seoul, an individual identified as A who violated the Licensed Real Estate Agents Act by inducing "housing price collusion in a group chat room," and referred the case to the prosecution. It also referred apartment owners to the prosecution for repeatedly posting messages that encouraged brokerage only at or above a certain price. Over the course of last year, the city detected and booked a total of 60 cases (55 violations of the Licensed Real Estate Agents Act and 5 violations of the Housing Act).

Acts that disturb order in real estate transactions, such as housing price collusion and false transactions, are punishable by imprisonment for up to three years or a fine of up to 30 million won. Licensed real estate agents who file false transaction reports or refuse co-brokerage may face cancellation of their brokerage office registration or suspension of their license for up to six months.

The city has stated that it will respond with zero tolerance to such "unfair practices" that threaten citizens' property rights and residential stability. In addition to its own investigations, it plans to maintain close cooperation with related agencies, including the Ministry of Land, Infrastructure and Transport, the Korea Real Estate Board, and district offices, in order to carry out high-intensity investigations.

Byeon Gyeongok, Director General of the Seoul Municipal Special Judicial Police Bureau for People's Livelihood, said, "Collusion on housing prices and filing false transaction reports make it harder for genuine end-users to buy their own homes and undermine trust in the market, seriously damaging order in real estate transactions," adding, "Since citizen reports play a decisive role in uncovering housing price collusion, we ask for active reporting and interest."