The Korean government has initiated a thorough investigation into suspected apartment lease fraud and speculative real estate transactions in the Seoul and Gyeonggi regions. On the 14th, the Government Real Estate Supervision Task Force held the 5th Real Estate Illegal Activities Response Council at the Government Complex in Seoul, reviewing the current status and future plans of investigations and prosecutions led by various ministries. During the meeting, agencies shared their intensive investigation and prosecution plans for the first quarter of this year and discussed inter-agency cooperation strategies. All participating organizations agreed that illegal and illicit activities in the real estate market undermine market order and housing stability, committing to strict enforcement and enhanced collaboration.
The Ministry of Land, Infrastructure and Transport (MOLIT) will continue its planned investigations into abnormal apartment transactions in Seoul and Gyeonggi, aiming to complete reviews of transactions reported in the second half of last year. The National Tax Service (NTS) is conducting a comprehensive review of high-value housing transactions and scrutinizing suspicious funding sources, especially among buyers under 30. The National Police Agency has been conducting a special crackdown from October 17, 2023, to March 15, 2024, arresting 13 individuals for lease fraud and referring 844 suspects in 351 cases. The Financial Services Commission (FSC) will guide thematic inspections of 166 mutual finance cooperatives, focusing on loan screening and on-site audits.
MOLIT is operating an integrated reporting center for illegal real estate activities to protect genuine buyers, planning to launch targeted investigations into major violations reported during the focused reporting period. The NTS is also intensifying scrutiny of luxury apartment gifting, cash transactions, private debt acquisitions, and irregular deals among related parties in areas like Gangnam and Mapo-Yongsan-Seongdong. The police will focus investigative resources on market-disrupting activities in Seoul and the metropolitan area, while designating enforcement targets by region based on local security needs. The FSC will apply inspection standards identified during last year’s field checks to this year’s thematic audits.
Going forward, the government will strengthen monitoring of transaction trends and tax evasion information in areas with rising prices to preemptively block illegal activities. Kim Yong-soo, head of the Real Estate Supervision Task Force, emphasized a zero-tolerance approach to real estate crimes threatening ordinary citizens and youth. All ministries will continue to cooperate to eradicate illegal practices and focus on stabilizing the market and ensuring fair transactions. These measures are expected to mark a significant turning point for transparency and trust in Korea’s real estate market.
The government’s multifaceted crackdown on real estate crime demonstrates a proactive approach to restoring transparency and trust in the market. By leveraging data-driven investigations and inter-agency cooperation, authorities can more effectively detect and prevent fraudulent activities. Integrating AI-powered anomaly detection with public reporting centers could further enhance early identification and deterrence of illegal transactions, paving the way for a healthier and more equitable real estate environment.