Gyeonggi Province Uncovers 406 False Real Estate Transaction Reporters, Refers 37 for Investigation

[Suwon Ilbo=Reporter Kim Gapdong] Gyeonggi Province announced on the 20th that following a special investigation of 2,618 suspected cases of false real estate transaction reporting and speculative real estate fraudulent share transactions from February to July of this year, it identified 406 individuals who falsely reported real estate transactions for purposes such as evading tax obligations, and imposed administrative fines totaling 864 million won. Among these, 37 individuals involved in false transactions, including violations of the Real Estate Brokerage Act, have been referred for investigation.

The province classified cases into three categories: suspected false reporting cases including up-down contract reporting, false contract date reporting, transactions between special-related parties, and cases with unconfirmed transaction amounts; false reporting cases involving money transfers without actual financial transactions and transactions where gifts are suspected in financing plans; and speculative real estate fraudulent share transaction cases extracted using the 'Speculative Real Estate Real-Time Monitoring System' developed by Gyeonggi Province.

Investigation results showed that 32 cases involving 33 individuals involved setting mortgages and other security measures to evade permission despite actual purchase contracts being concluded within land transaction permission zones; and violations of the 'Real Estate Brokerage Act' including unlicensed brokerage activities and excessive brokerage fees in 4 cases involving 4 individuals—totaling 37 individuals referred for investigation by authorities.

Additionally, the province reported 451 cases to tax authorities in which suspicion points were not found in transaction documents but real estate buyers and sellers were confirmed to be related parties including family and relatives, or reported transactions at unreasonable prices compared to surrounding market rates, requesting tax investigations. By category: 188 cases of special-related transactions, 32 cases of suspected transaction prices, 60 cases of unconfirmed transaction amounts, 10 cases of payment in kind, and 161 other cases (including suspected indirect gifts).

The 'Speculative Real Estate Real-Time Monitoring System' used in this investigation tracks typical speculative real estate transactions based on actual real estate transaction data, comprehensively analyzing whether share transactions occurred, zoning categories, and transaction frequency relative to time periods—specifically tracking instances where forest land in development-restricted zones with difficult actual development is inflated to several times the standard publicly announced land price and sold in shares to multiple parties over a short period.

Ko Joong-guk, head of the Land Information Division at the province, stated, "We will continue to track suspected illegal real estate cases in the second half of this year and conduct rigorous investigations," adding, "We will make efforts to establish fair and transparent transaction order by imposing administrative measures on illegal matters and requesting investigations from investigative agencies."