Some real estate agencies in Seoul have repeatedly violated advertising regulations despite facing penalties. One agency has been penalized 12 times in the past five years, raising concerns that fines are being treated as mere business expenses.
According to data submitted by the Seoul city government to Rep. Buseung-chan of the National Assembly's Land, Infrastructure and Transport Committee, Agency A has received a total of 12 penalties for advertising violations from 2022 to this year, with many of these being fines for violations related to the display and advertising of properties.
Agency B has been penalized 11 times for violations of advertising and disclosure obligations, including suspensions due to repeated offenses. Agency C has received 10 fines for advertising violations.
Notably, Agency B faced two suspensions in December 2024 and May 2026. Records show that violations of disclosure obligations and advertising rules occurred between these two suspensions. This raises questions about the effectiveness of post-penalty management and enforcement for agencies that have received suspensions.
The limitations of the Real Estate Agent Act were also highlighted in an investigation by Aju Economy. In March, the investigative team inquired about listings from 30 real estate agencies in Seoul and found that only nine of the advertised properties were available for viewing.
Instances of 'false listings,' where potential buyers are lured to view properties that are not actually available, have been frequently reported. There are also indications of 'zombie operations,' where staff move to different agencies under new names to continue business after a suspension.
The problem is compounded by an increase in the number of false listing determinations, raising doubts about the current law's deterrent effect. According to data from the Korea Internet Self-Regulation Organization (KISO), the number of false listings rose from 21,553 in 2024 to 23,728 in 2025. By February of this year, there were 4,270 cases, a 33% increase compared to 3,201 during the same period last year.
Rep. Buseung-chan stated, "If a real estate agency is caught more than ten times and continues to violate regulations, it raises the question of whether fines are seen as a cost of doing business rather than a penalty. We need to assess whether enhanced penalties for habitual offenders are effectively enforced and improve the system to genuinely prevent repeated violations."
According to data submitted by the Seoul city government to Rep. Buseung-chan of the National Assembly's Land, Infrastructure and Transport Committee, Agency A has received a total of 12 penalties for advertising violations from 2022 to this year, with many of these being fines for violations related to the display and advertising of properties.
Agency B has been penalized 11 times for violations of advertising and disclosure obligations, including suspensions due to repeated offenses. Agency C has received 10 fines for advertising violations.
Notably, Agency B faced two suspensions in December 2024 and May 2026. Records show that violations of disclosure obligations and advertising rules occurred between these two suspensions. This raises questions about the effectiveness of post-penalty management and enforcement for agencies that have received suspensions.
The limitations of the Real Estate Agent Act were also highlighted in an investigation by Aju Economy. In March, the investigative team inquired about listings from 30 real estate agencies in Seoul and found that only nine of the advertised properties were available for viewing.
Instances of 'false listings,' where potential buyers are lured to view properties that are not actually available, have been frequently reported. There are also indications of 'zombie operations,' where staff move to different agencies under new names to continue business after a suspension.
The problem is compounded by an increase in the number of false listing determinations, raising doubts about the current law's deterrent effect. According to data from the Korea Internet Self-Regulation Organization (KISO), the number of false listings rose from 21,553 in 2024 to 23,728 in 2025. By February of this year, there were 4,270 cases, a 33% increase compared to 3,201 during the same period last year.
Rep. Buseung-chan stated, "If a real estate agency is caught more than ten times and continues to violate regulations, it raises the question of whether fines are seen as a cost of doing business rather than a penalty. We need to assess whether enhanced penalties for habitual offenders are effectively enforced and improve the system to genuinely prevent repeated violations."
* This article has been translated by AI.
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