Gov’t to investigate suspicious real estate transactions in Seoul

Oct 08, 2019, 08:32 am

By AsiaToday reporter Choi Joong-hyun

The government plans to conduct a thorough investigation into suspicious real estate transactions in Seoul, will investigate suspicious real estate transactions in Seoul.

The Ministry of Land, Infrastructure and Transport announced Monday that it will conduct a joint investigation into real transactions in Seoul with related organizations, such as the Ministry of the Interior and Safety, National Tax Service, Financial Services Commission, Financial Supervisory Service, the Seoul government, and Korea Appraisal Board, starting on Friday.

The joint investigation is the follow-up measure of a report entitled, the result of the latest real estate market inspection and complementary measures, announced by the relevant authorities earlier this month. It will be the largest inspection involving 32 agencies.

The government will inspect transactions with excessive loans, cash-based transactions, and other suspicious transactions.

The investigation will cover all 25 districts in Seoul while focusing on eight major expensive districts of the capital city – Gangnam-gu, Seocho-gu, Songpa-gu, Gangdong-gu, Mapo-gu, Yongsan-gu, Sungdong-gu, and Seodaemun-gu.

The government will investigate those transactions suspected of inadequate funding or illegal acts, which are reported since August. If necessary, transactions before August will be also investigated.

If an illegal case is found, a fine will be imposed according to the Real Estate Transaction Reporting Act. In order to respond to various shortcuts and illegal acts, the inspection result will be immediately notified to relevant organizations, such as Financial Services Commission, Financial Supervisory Service, the Ministry of the Interior and Safety, National Police Agency, and National Tax Service.

The joint inspection will be conducted by December. Starting in 2020, a regular investigation system will be operated in stages.

The regular investigation system will monitor transaction reports and respond immediately if the local market is overheated or suspected case is found. Once a regular investigation is allowed in February next year, the land ministry plans to launch a team jointly with the Korea Appraisal Board to monitor abnormal real estate transactions nationwide.

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