“Claimed No Loans, But 1.2 Billion Won Mortgage Found”... Around 10,000 Illegal Real Estate Ads Detected

10,412 Suspicious Illegal Real Estate Ads Detected Online

"Verifying Official Registry Documents Is Essential Before Signing Contracts"

Over the past year, around 10,000 illegal advertisements have been detected that misrepresented non-residential buildings as homes or concealed the real property rights by making it appear there were no mortgage loans.

The Ministry of Land, Infrastructure and Transport (MOLIT) announced on the 18th that a focused inspection of online real estate advertisements from July of last year to this June uncovered 10,412 ads suspected of legal violations.

The Asia Business Daily DB

Among the types of violations, "misleading display advertisements"—such as falsely listing the building’s usage or area regarding the property—were the most prevalent, accounting for 5,201 cases (55.4%). For example, some ads labeled properties as standalone homes, but the official building registration identified them as accommodation facilities.

Cases of violating the mandatory disclosure of essential information, such as the property’s location, followed with 3,753 cases (40%). In one instance, ads claimed there were no loans, but official registry records revealed a 1.2 billion won mortgage had been established. There were also 429 cases (4.6%) where ads were posted by unlicensed individuals who are not registered real estate agents.

MOLIT has notified local governments in charge of the detected cases, requesting them to take follow-up measures such as imposing fines and referring cases for investigation. According to the Certified Real Estate Agents Act, violations of display and advertising regulations are subject to fines of up to 5 million won, while violations of mandatory disclosures carry fines of up to 500,000 won.

To prevent such abuses, MOLIT recommends verifying that information about properties posted online matches the details in the official building registration and registry documents, and checking through local governments whether the advertiser is a licensed real estate agent.

Shin Yoongeun, Land Policy Director at MOLIT, stated, "We will continue to strengthen the monitoring of false or exaggerated real estate advertisements, doing our utmost to create a transparent real estate market where everyone can trade with confidence."

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