South Korea real estate disorder cases exceed 1,000

Over 1,000 cases of real estate transaction disorder, including price collusion, illegal brokerage, and false reporting, have been subject to administrative measures or investigations over the past five and a half years in South Korea. According to data from the Ministry of Land, Infrastructure and Transport provided to lawmaker Yoon Jong-gun, a total of 1,005 actions were taken between 2021 and June 2024.

Of these cases, 477 involved requests for investigation, 337 were administrative measures, and 191 were notifications to tax offices. The frequency of these actions has risen significantly, with 238 cases recorded in the first half of 2024 alone, representing approximately 64% of the total actions taken in 2023.

Specific fraudulent activities identified include ‘up-contracting,’ where transaction prices are falsely inflated to increase loan limits—notably in officetel sales—and the falsification of contract dates. Other violations included price collusion, failure to properly explain properties to clients, and the unauthorized lending of real estate brokerage licenses.