Gyeonggi Province Cracks Down on Speculative Real Estate Schemes...Using Algorithm to Detect Speculative Transactions

[Suwon Ilbo=Reporter Park No-hoon] Gyeonggi Province has developed a system capable of detecting illegal speculative transactions through analysis of speculative real estate transaction patterns.

This transaction pattern is a type of algorithm that comprehensively reviews whether equity transactions occur, zoning, cases where transaction amounts are inflated excessively beyond official land prices, and transaction frequency relative to time period to determine illegal speculative transactions.

For example, this applies to cases where land such as forests in development-restricted zones where development is difficult are sold to multiple parties at prices several times higher than official land prices, with equity stakes sold off in a short period.

Gyeonggi Province announced on the 13th that it has established and is operating a '24/7 Speculative Real Estate Monitoring System' with such functions on 'Gyeonggi Real Estate Portal' (gris.gg.go.kr), a real estate information website.

The province expects to be able to discover suspicious transactions in real-time through this system.

This represents a significant reduction in investigation time compared to when the province previously received and cross-referenced real estate transaction data from cities and counties.

Before the full-scale operation of the 24/7 monitoring system, from January to December of last year, the province analyzed transaction patterns of suspected speculative real estate transaction targets and discovered 198 suspected illegal transactions.

Through in-depth investigation, the province identified 309 violators, including false reporting of real estate actual transactions.

Administrative fines totaling 248 million won were imposed on these individuals, and 11 cases of land transaction permit evasion were referred to investigative authorities for prosecution.

Twenty-six cases of unverifiable transaction payment and suspected illegal transfer were referred to the National Tax Service for tax investigation.

Going forward, the province plans to continue investigating not only real-time transactions but also past transaction records using the 24/7 monitoring system.