Gyeonggi Province Uncovers 69 Cases of Illegal Real Estate Brokerage Practices
Gyeonggi Province announced on the 23rd that a joint inspection of 527 licensed real estate brokerage offices across the province resulted in the discovery of 69 violations at 67 locations, leading to administrative measures and criminal referrals as part of efforts to create a safe real estate brokerage market and prevent jeonse (deposit lease) fraud.
The province conducted joint inspections with municipal and county governments and the Safe Jeonse Management Division from April 27 to June 19. The inspection targets were determined through operational consultation councils established by municipal and county governments and the Safe Jeonse Management Division.
As a result of the inspection, the province took administrative action on 49 cases, including 2 license cancellations, 1 credential suspension, 18 business suspensions, and 28 fines, and referred 9 cases for criminal investigation. The remaining 11 cases were handled through warnings or corrective measures.
Major violations included failures to prepare, deliver, and maintain property confirmation and explanation documents, omissions of signatures and seals, unreported employment and terminations, and violations in advertising and displays. Serious violations such as lending registration certificates, unregistered brokerage activities, and brokerage fees exceeding legal standards were also identified.
In particular, cases were found where brokers failed to properly explain whether landlords had authority to rent trust-registered properties (properties entrusted to trust companies by owners) or whether other mortgages or prior rights were established. Due to the failure to re-verify changes in rights before final payment, renters suffered losses to their deposits.
Alongside inspections of illegal practices, the province also examined compliance with implementation tasks among 1,057 licensed real estate brokerage offices participating in the "Gyeonggi Safe Jeonse Project." As a result, 933 offices, representing 88.3%, were found to be implementing the tasks, including 770 offices rated as excellent and 163 as average. 101 offices showed insufficient implementation, 9 did not participate, and 14 were classified under other reasons such as business closure or suspension.
The Gyeonggi Safe Jeonse Project is a public-private cooperation initiative in which licensed real estate brokers guide renters on pre-contract verification matters and identify jeonse fraud risk factors during the contract process. During this inspection, the province provided guidance to brokerage offices with insufficient implementation or non-participation, including methods necessary at actual contract stages such as providing renter checklists, explaining mandatory special clauses, and re-verifying changes in rights after contracts.
Separately, Gyeonggi Province and Yongin City conducted joint inspections in May and June targeting the Yongin Semiconductor Cluster development area where concerns about overheated real estate transactions existed. They referred 3 cases for investigation, including 2 suspected cases of unregistered brokerage activities and 1 suspected case of duplicate registration. Four cases involving closed brokerage offices failing to remove signs or display mutual aid certificates were corrected at the site or subject to administrative guidance.
Son Im-seong, director of the Urban Housing Division of Gyeonggi Province, said, "We will continuously monitor actual implementation to ensure the Safe Jeonse Project takes root in the field and respond strictly to illegal acts in brokerage processes. We will create a transparent and safe real estate brokerage environment where residents can conduct transactions with confidence."