"Don't List Below 1.1 Billion"... Apartment Residents Caught Colluding on Home Prices Using ChatGPT

Gyeonggi Province Refers Six Owners for 'Organized Price-Fixing' at Hanam Apartment Complex
Private Group Chat of 179 Residents Used for 'Targeted Reporting'... 157 False Complaints Filed
Legitimate Listings Blocked, Distorting Market Prices... Yongin 'Broker Cartel' Also Under Investigation

Residents of an apartment complex who used the artificial intelligence (AI) chatbot 'ChatGPT' to create complaint forms and mobilized virtual phone numbers to systematically pressure real estate agents have been caught by the Gyeonggi Province Special Judicial Police Unit. They created a private group chat room and carried out indiscriminate 'targeted reporting' against real estate agents who listed properties below a minimum price they had set.

Overview of Apartment Price Fixing and Violations of the Licensed Real Estate Agents Act. Provided by Gyeonggi Province

On May 22, Gyeonggi Province announced that it had referred six owners of an apartment complex in Hanam City to the prosecution on charges of violating the Real Estate Agents Act, after they allegedly colluded to fix apartment sale prices and obstructed the business of real estate agents by abusing a private KakaoTalk open chat room.

The investigation revealed that these individuals operated a private group chat with 179 owners participating, through which they controlled property prices. The guidelines they shared set the sales price at 1.1 billion won and the jeonse (long-term lease) price at 650 million won. They established a rule that no listings could be registered below these prices.

When some real estate agents posted advertisements at the normal prices requested by homeowners (below 1.1 billion won), the group began their organized "retaliatory actions." The chat room leaders thoroughly divided roles and acted accordingly.

Their actions were highly organized, reminiscent of a military operation. The main orchestrator, Mr. A, created and distributed mass complaint forms, leading the offensive. Mr. B managed the property listings using Excel spreadsheets and instructed participants on how to make anonymous complaints by using caller ID restrictions or virtual numbers. Mr. C led the bombarding of complaints and phone harassment, while Mr. D maliciously targeted specific agencies with slander about market prices. Ms. E utilized the AI chatbot ChatGPT to generate complaint templates, encouraging group reporting among chat participants.

Due to their systematic obstruction, the affected real estate agent, Mr. F, suffered severe psychological distress and was subjected to relentless harassing phone calls day and night. Additionally, legitimate listings were blocked from Naver Real Estate as a result of false claims that they were fraudulent, leading to an artificial increase in real estate prices in the area and causing a distortion in the market.

They reported a total of 157 cases over several months by "pinpointing" agents and submitting complaints to Hanam City Hall (73 cases) and the Naver Real Estate false listing reporting center (84 cases). However, investigation confirmed that none of the listings they reported were actually false.

Their organized obstruction immediately distorted the market. The accumulation of indiscriminate false reports led to the forced blocking of legitimate property advertisements by the affected agents on portal sites such as Naver Real Estate. As the advertisements were blocked, the agency effectively had to suspend its business, resulting in tangible losses.

As a result, advertisements for lower-priced properties were forcibly hidden from the market, which led to an artificial increase in apartment prices in the complex. Mr. F, the real estate agent who was harmed, testified, "Because of threatening messages and bombarding complaints that continued late into the night, I was unable to conduct normal work and suffered from severe psychological distress."

Article 33 of the current Real Estate Agents Act strictly prohibits actions that induce others not to request brokerage services below a certain price through notices or online communities, as well as interfering with legitimate advertising and promotional activities.

Gyeonggi Province explained that this case was the result of inter-agency cooperation through the "Real Estate Illegal Activity Response Council," which has been operated under the Office for Government Policy Coordination since February this year. The province has been narrowing its enforcement net by sharing investigation updates every two weeks with the Ministry of Land, Infrastructure and Transport, the National Police Agency, and the National Tax Service.

Meanwhile, Gyeonggi Province is also expanding its investigation to cover chronic "exclusive cartels" among real estate agents. Currently, three executives of a real estate agents' association in Yongin City, who organized a social club and prohibited joint brokerage with non-member agencies to block transactions, are under investigation and will also be referred to the prosecution next month.

Kim Yongjae, Director of Land Information at Gyeonggi Province, emphasized, "This case is a representative example of organized price collusion and obstruction of real estate agents' work through the abuse of online communities and AI technology," adding, "We will continue to thoroughly investigate and strictly respond to illegal activities that disrupt the order of sound transactions in the real estate market."

This content was produced with the assistance of AI translation services.