#Mr./Ms. A bought an apartment in Seoul for 11.75 billion won and raised 6.77 billion won by borrowing from a corporation where A serves as an inside director. The Ministry of Land, Infrastructure and Transport viewed this as excessive borrowing fund from a related party and notified the National Tax Service.
The Office for Government Policy Coordination's real estate oversight task force said on the 23rd at the "12th council on responding to illegal real estate activities" that a planned probe by the Ministry of Land, Infrastructure and Transport (MOLIT) into abnormal transactions in Seoul and Gyeonggi dwellings from July to October last year uncovered a total of 746 suspected illegal transactions.
This planned probe was conducted in anticipation of concerns that abnormal transactions disrupting market order—such as expedient loans and gifts or violations of land transaction permit rules—would expand as market-stabilizing measures like tighter loan regulations and expanding land transaction permit zones took full effect.
The Ministry of Land, Infrastructure and Transport (MOLIT) investigated a total of 2,255 abnormal transactions and detected 746 suspected illegal transactions (867 suspected violations).
The most frequently detected type was expedient gifting. There were 572 cases where related parties such as parents or corporations lent dwelling transaction payments to the buyer (such as a child or a corporation's representative) without drafting an IOU or where verification was needed on whether appropriate interest was paid.
There were also 99 suspected transactions of misusing loan funds for purposes other than intended, such as an individual business owner receiving a loan for corporate working capital and then buying a dwelling. Mr./Ms. B bought an apartment in Seoul for 1.83 billion won, received a 788 million won loan from a bank for corporate working capital, but the Ministry of Land, Infrastructure and Transport (MOLIT) suspected B used the funds to buy the apartment for purposes unrelated to the business.
In addition, ▲ 191 cases suspected of reporting a transaction amount and contract date different from the actual ones while conducting a dwelling transaction ▲ 4 cases suspected of receiving brokerage fees exceeding the cap while conducting a dwelling transaction ▲ 1 suspected case of violating the Real Name Real Estate Transactions Act to evade foreigner land transaction permits were also detected.
In addition, the Ministry of Land, Infrastructure and Transport (MOLIT) conducted "unregistered transactions" monitoring in the first half of last year and, after examining about 250,000 apartment transactions nationwide, notified 306 unregistered transactions (0.12% of all transactions) to the reporting authorities (cities, counties, and districts), requesting additional investigations and administrative dispositions for false reports and failure to report cancellations.
The Ministry of Land, Infrastructure and Transport (MOLIT) is currently conducting a planned probe into transaction reports in Seoul and Gyeonggi from November to December last year and will continue to investigate this year's reports.
A Ministry of Land, Infrastructure and Transport (MOLIT) official said, "We are receiving reports through the 'integrated reporting center for illegal real estate activities' on the full range of acts disrupting real estate transaction order, including 'home price collusion,' market manipulation (such as price ramping), and illegal labeling and advertising of properties online," adding, "We plan to respond strictly to reported cases in cooperation with local governments."