MLIT Uncovers 346 Suspected Illegal Transactions in Newly Designated Housing Supply Areas in Seoul Metropolitan Area

249 Cases of False Reporting on Prices and Contract Dates—Nearly Half of Total
Pre-screened Corporate Buyers, Non-local Purchases, and Repeated Trades
Corporation That Spent 22.25 Billion Won Provided No Proof of Funding
"Active Special Inv

The government conducted an intensive investigation into abnormal real estate transactions in areas designated for new housing supply in the Seoul metropolitan area, uncovering more than 300 suspected illegal deals. A wide range of unscrupulous transactions—ranging from speculative activities under corporate names to tax evasion and misappropriation of loans—have surfaced.

The Ministry of Land, Infrastructure and Transport announced that, as part of a focused investigation carried out in connection with the “Plan to Expand Urban Housing Supply (January 29)” released in January this year, it has detected a total of 346 suspected illegal transactions in newly supplied residential zones in Seoul and Gyeonggi Province.

This investigation covered 1,072 real estate transactions conducted over the past five years (from January 2021 to February 2026) across seven districts, including Nowon-gu and Yongsan-gu in Seoul, as well as Gwacheon, Seongnam, and Gwangmyeong in Gyeonggi Province. The Ministry concentrated on transactions deemed likely to disrupt market order, such as purchases by corporations or non-local buyers, repeated short-term trades, and parceling of ownership shares.

The 346 detected cases involved a total of 457 suspected legal violations, as some deals were found to have breached multiple laws—such as both criminal fraud and tax evasion—in a single transaction. By type, the most common violation was “false reporting of price and contract date,” accounting for 249 cases, followed by “excessive related-party loans” with 178 cases. There were also numerous instances of “misuse of loan funds for unauthorized purposes” (16 cases) and “violations of the Licensed Real Estate Agent Act” (14 cases).

Unusual cases of speculative schemes were also uncovered. One corporation in the Gangseo-gu district of Seoul scooped up 19 parcels of land and houses for a total of approximately 22.25 billion won but submitted no supporting documentation for the payment, triggering a National Tax Service investigation. In Seongnam, Gyeonggi Province, another corporation was caught purchasing land worth about 3.2 billion won by borrowing 3.21 billion won from a shareholder company without any loan agreement or documentation.

A corporation borrowed 800 million won from its CEO to purchase a detached house in Yongsan-gu, Seoul, for 2.7 billion won. Subsequently, it secured an 800 million won working capital loan from a financial institution to repay the CEO's loan. Ministry of Land, Infrastructure and Transport

There were also indications that funds meant for company management were diverted into real estate speculation. One corporation that bought a single-family house in Yongsan-gu, Seoul, for 2.7 billion won borrowed 800 million won from its CEO for the final payment, and subsequently took out an 800 million won working capital loan from a financial institution to repay the CEO. This working capital loan—originally intended for wages and raw material purchases—was instead funneled through housing acquisition, prompting a report to financial authorities on suspicion of misuse.

The Ministry of Land, Infrastructure and Transport plans to refer these suspected illegal transactions to the National Tax Service, Financial Services Commission, local governments, and the police, and will take strict measures such as collecting unpaid taxes and imposing fines.

Ministry official Shin Yoongeun, Director of Land Policy, stated, "We will continue to actively carry out planned investigations into abnormal transactions that disrupt market order and, when illegal activities are identified, will take strict action in cooperation with relevant agencies."

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