The Seoul city government said on the 27th that, in a joint response with the 25 district offices to crack down on illegal real estate practices, it uncovered a total of 782 illegal acts by licensed real estate agents and completed measures including related registration cancellations.
Key inspection targets were ▲ unqualified or unregistered brokerage ▲ false listings or exaggerated advertising ▲ charging brokerage fees above the cap ▲ violations in labeling or advertising brokerage properties ▲ violations in drafting contracts or explanations ▲ lending of brokerage office registration certificates ▲ illegal brokerage activities by brokerage assistants, among others.
Measures taken against the licensed agents who committed the uncovered acts included 17 registration cancellations, 22 business suspensions, 400 fines, 4 license revocations, 1 license suspension, and 338 administrative guidance actions.
In this inspection, authorities found cases where consumers were lured by registering false listings at prices significantly below actual transaction prices, and where brokerage fees above the legal cap were collected. Brokerage office A was found to have registered numerous listings on an online platform without any actual intent to transact, then steered consumers who inquired after seeing them to other contracts. The Seoul city government deemed this the registration of false listings to lure consumers, conducted an on-site inspection, took administrative action under the relevant regulations, and requested an investigation.
It was also uncovered that 11 people, including an operating licensed agent and affiliated licensed agents registered in one district, received brokerage fees up to 18 times above the legal cap while brokering a lease contract.
The Seoul city government plans to continue on-site inspections focused on complexes moving in (or slated to move in) and to strengthen monitoring of suspected abnormal transactions. It also plans to maintain a strict response posture to illegal real estate acts, including administrative dispositions and referrals for investigation.
An Dae-hee, head of the Seoul city Urban Space Headquarters, said, "Illegal real estate practices are serious violations that threaten citizens' safe residential environment and undermine market trust," adding, "For acts that disrupt the real estate market, we will create an environment where citizens can transact with confidence through year-round, continuous on-site inspections and stern measures."