The government said it found signs of legal violations, including the formation of broker social groups for the purpose of collusion, after inspecting licensed real estate agent offices in Seoul's Gangnam and Seocho districts. The government plans to toughen penalties for collusion by licensed brokers to stabilize the real estate market.
The Office for Government Policy Coordination's real estate supervision task force held the 11th meeting of the council on responses to illegal real estate acts on Apr. 9 at Government Complex Seoul in Jongno District, Seoul. Agencies including the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the National Tax Service, and the Korean National Police Agency attended.
The Ministry of Land, Infrastructure and Transport (MOLIT) said that on the 31st it carried out a joint inspection with local governments, including the Gangnam and Seocho district offices, of about 40 licensed real estate agent offices and identified suspected violations of the Licensed Real Estate Agents Act, such as forming broker social groups for collusion and restricting co-brokerage with nonmembers of the group. Some licensed brokers in the area formed social groups that charged high membership fees, jointly brokered only high-demand listings for members, and imposed their own disciplinary measures when members engaged in a transaction with nonmembers, effectively leading collusion.
The task force plans to request an investigation by the Korean National Police Agency as soon as concrete evidence is secured through focused intake at the reporting center.
The Korean National Police Agency ordered all provincial and metropolitan governments to step up intelligence gathering and enforcement regarding broker collusion. MOLIT and local governments said they will take strong measures, including suspending licensed broker operations and canceling office registrations when illegal acts are confirmed, and if an office registration is canceled, banning the opening of a new office for three years.
In addition, the National Tax Service said that since operating its real estate tax evasion reporting center starting Oct. 31 last year, it has received 780 tax evasion tips to date. The National Tax Service plans to thoroughly verify the reported cases.
Kim Yong-su, head of the real estate supervision task force, said, "Collusion among licensed brokers confirmed in parts of Seoul is a serious illegal act that undermines trust in the market," adding, "We will further tighten enforcement and mobilize every available measure, including suspensions and registration cancellations, to ensure they are expelled from the market."