Gyeonggi Province Conducts Special Inspections of 362 Real Estate Brokers Suspected of Participating in Jeonse Fraud

[Suwon Ilbo=Park No-hun Reporter] Gyeonggi Province will conduct special inspections of 362 real estate brokers suspected of participating in jeonse fraud by November 30th.

According to the province on the 5th, the targets of the special inspections are real estate brokers who concluded one or more brokerage contracts for 431 damage consultation properties registered with the Gyeonggi Province Jeonse Fraud Victim Support Center in the first half of this year.

Looking at the number of brokerage contracts per real estate broker, 1 contract accounted for the largest share at 297 people, with 10 individuals having brokered 5 or more contracts, including one person who concluded 14 brokerage contracts.

The security deposit amounts for the damaged properties ranged from a minimum of 20 million won to a maximum of 601 million won.

By price range, the breakdown was as follows: under 100 million won 93 cases (21.5%), 100 million to under 200 million won 206 cases (47.8%), 200 million to under 300 million won 97 cases (22.5%), and over 300 million won 35 cases (8.2%).

A joint inspection team composed of the province, cities and counties, and special judicial police will examine the brokerage records of real estate brokers who mediated tenant jeonse fraud properties over the past three years to thoroughly investigate whether they participated in jeonse fraud, such as brokering specific landlord properties for the purpose of fraud or receiving rebates.

Additionally, the province will verify the status of real estate broker license rentals, non-reporting of employees, and compliance with duties to confirm and explain brokerage properties.

Based on the results of the joint inspections, administrative measures will be taken against illegal conduct such as violations in marking and advertising brokerage properties, improper confirmation and explanation of brokerage properties, and non-reporting of brokerage assistants. For serious illegal conduct such as false provision of important information in jeonse contracts, excessive brokerage fees, and price fixing, the province plans to secure relevant evidence and refer cases to police investigation.

Earlier, from February to July, the province conducted two rounds of special inspections jointly with the Ministry of Land, Infrastructure and Transport and cities and counties on real estate brokers suspected of participating in jeonse fraud, detecting 113 cases of illegal conduct from 94 locations.

Twenty-one locations where major violations such as jeonse fraud participation and excessive brokerage fee collection were confirmed were referred for investigation.

Ko Joong-guk, Director of the Land Information Division of Gyeonggi Province, said, "Given the continued concerns about reverse jeonse crisis, we will continue to conduct inspections and crackdowns on brokerage offices to prevent harm to residents."