Gyeonggi Province to Conduct Special Investigation on Suspected False Real Estate Transaction Reports from March to June

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province will conduct a joint special investigation by the province, cities, and counties from March to June targeting suspects of false and fraudulent real estate transaction reports and illegal brokerage activities across the province.

Investigation targets include cases within the region's real estate transaction reports where false reports are suspected, such as transaction price inflation or reduction for tax evasion and increased mortgage lending limits, false transaction reports involving highest-price reports without monetary transactions for real estate price manipulation, and cases where false report suspicions have been raised through civil complaints or media reports.

The investigation will also cover the sources of funds listed in the financing plans for real estate transactions in speculative overheated areas and regulated areas.

In particular, the province plans to intensively investigate ▲minors acquiring houses priced at 300 million won or higher ▲persons under 30 who purchased high-value houses exceeding 900 million won ▲transactions financed by other borrowed funds without loans.

For direct transactions reported without a broker, if it is determined that illegal acts by unqualified persons or licensed real estate agents were involved, the province plans to request investigation from Gyeonggi Province's Special Judicial Police Division and take criminal complaint measures.

The investigation will be conducted after requesting relevant supporting documents from the transaction parties, and if the supporting documents are insufficient or not submitted, an in-person investigation will be conducted.

Even if supporting documents are submitted, if they significantly differ from market prices or if there is strong suspicion of tax evasion such as transfer tax or gift tax, the matter will be reported to the relevant National Tax Service.

Those who submit false supporting documents or file fraudulent reports will face administrative fines of up to 30 million won, and those who file false reports regarding transaction prices or other matters will be subject to administrative fine proceedings equivalent to 5 percent of the real estate acquisition value, as well as tax investigation for suspected transfer tax or gift tax evasion.

Last year, through special investigations, the province identified 302 violations of real estate transaction reporting, imposed administrative fines of approximately 2.37 billion won, and requested tax investigations from the National Tax Service for 442 cases related to tax evasion.

Those who report illegal real estate transactions will receive up to 10 million won in reward money.

Reporting targets include false real estate transaction price reports and fraudulent reports without monetary transactions, and reports should be made to the real estate management department of the city, county, or district where the relevant property is located.

Hong Ji-seon, head of the Urban Housing Bureau of Gyeonggi Province, stated, "We plan to concentrate administrative efforts on investigating illegal real estate transaction acts to establish fair and transparent real estate transaction order and realize tax justice," and added, "We plan to reduce administrative fines for voluntary reporters."