A Seoul apartment recently traded for 1.7 billion won, about 30% lower than the current market price. The buyer, Mr. A, purchased this apartment from his parents. It has been confirmed that Mr. A and his parents excessively paid brokerage fees through unnecessary intermediary transactions. Consequently, authorities are investigating it as a suspected case of improper gift-giving.
On the 1st, the Seoul city government revealed that it discovered 70 suspected transactions after inspecting a total of 225 brokerage offices in conjunction with the Ministry of Land, Infrastructure and Transport and district offices.
By type, there were many cases of excessive borrowing fund (28 cases) and improper gift-giving (11 cases). There was one case each of false reporting and others, totaling 30 cases.
Unregistered brokers provided unverified market information about major apartments through online communities and induced contract signing through specific certified brokers, exposing illegal brokerage activities (such as price inflation and unlawful displays and advertisements).
Seoul City plans to notify relevant agencies, including the Financial Services Commission, the National Tax Service, and the Korean National Police Agency, to take action as soon as the facts regarding the suspected cases are confirmed.
Joo Nam-jun, head of the Urban Space Headquarters in Seoul City, said, "We are making efforts to block speculative demand from entering the real estate market by mobilizing various means," and added, "We will do our best to establish transparent market transactions by implementing effective measures without gaps in the future."