The Seoul Municipal Livelihood Judicial Police Bureau will launch an intensive investigation into acts that disrupt real estate transaction order, such as home price collusion and false transaction reports. The city plans to focus on large-complex clusters in Gangnam, Seocho and Songpa.
The Seoul city government said on the 23rd that it will operate a "real estate price collusion intensive reporting period" through the end of June. As Seoul apartment sale prices have risen for 53 straight weeks and signs of home price collusion have appeared—such as preventing listings below certain prices in online group chats—the city moved to investigate.
The city will focus inspections on areas with many complaints about home price collusion, including large-apartment clusters in Gangnam District, Seocho District and Songpa District, and, if needed, expand the investigation to other autonomous districts.
The city will focus on investigating acts such as "forcing prices to be displayed or advertised significantly above market rates," "refusing co-brokerage to those who are not members of a specific association of licensed real estate agents," "inducing users on online communities to refrain from listing below certain prices," and "displaying or advertising listings that are not actually transacted for the unjust purpose of raising market prices."
Acts that disrupt real estate transaction order, such as home price collusion and false transactions, are punishable by up to three years in prison or a fine of up to 30 million won, and licensed real estate agents who file false transaction reports or refuse co-brokerage may face revocation of their brokerage office registration or suspension of qualifications for up to six months.
Citizens who discover illegal collusion or are harmed by it can report it via the "Livelihood Infringement Crime Reporting Center" on the Seoul city website or the smartphone app "Seoul Smart Inconvenience Report." The city will, after review, pay rewards of up to 200 million won to citizens who report criminal acts with evidence proving the allegation, such as screen captures.