The South Korean government said it found more than 700 suspected illegal housing transactions, including disguised gifts, in a targeted probe of deals in and around the capital.
The Ministry of Land, Infrastructure and Transport said on the 23rd it conducted a planned investigation into home purchase reports filed from July to October last year, identifying 746 suspected illegal transactions involving 867 suspected violations. It said it notified relevant agencies.
The ministry said the probe was launched amid concerns that market-disrupting practices would spread after measures such as tighter lending rules and an expansion of land transaction permit zones.
An earlier review of reports filed from January to June last year covered Seoul and six areas in Gyeonggi Province — Gwacheon, Suji District in Yongin, Bundang and Sujeong districts in Seongnam, Dongan District in Anyang, and Hwaseong. The latest probe added nine more Gyeonggi areas: Gwangmyeong, Uiwang, Hanam, Namyangju, Guri, Jungwon District in Seongnam, and Jangan, Paldal and Yeongtong districts in Suwon.
By type, the suspected violations included: disguised gifts and excessive borrowing from related parties (572 cases); false reporting of prices or contract dates (191); misuse of loan funds (99); violations of the Licensed Real Estate Agents Act (4); and a violation of the Real Name Real Estate Transactions Act (1).
In one case, a buyer purchased a Seoul apartment for 11.75 billion won and financed 6.77 billion won by borrowing from a company where the buyer was registered as an inside director. The case was referred to the National Tax Service over suspected excessive related-party borrowing.
In another, a buyer purchased a Seoul apartment owned by the buyer’s mother for 2.34 billion won, while signing a jeonse lease deposit contract for 1.7 billion won with the mother as tenant. Authorities said the deal could amount to a gift due to an underpriced transaction and referred it to the tax agency.
Separately, the ministry said it reviewed about 250,000 apartment transactions reported nationwide in the first half of last year and found 306 unregistered deals. It said it notified local governments and requested further investigations and administrative action.
The ministry said it is also conducting a planned probe into transaction reports filed in November and December last year for Seoul and Gyeonggi Province, and plans to continue investigations into deals reported this year.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.