"Report price-fixing group chats and get up to 200 million won"...Seoul moves against collusion on home prices

[Financial News] The Special Judicial Police Bureau for Citizens' Livelihood of the Seoul Metropolitan Government will launch an intensive investigation into practices that distort the real estate market and harm citizens without homes, including collusion to fix home prices and filing false transaction reports that disrupt the order of real estate transactions.
On the 23rd, the city announced that it will focus its investigation on large apartment complexes in areas with a high number of complaints about price-fixing, such as Gangnam District, Seocho District and Songpa District. If necessary, the scope of the probe will be expanded to other autonomous districts.
The city will also operate a "Real Estate Price Collusion Intensive Reporting Period" through the end of June. Citizens who discover illegal collusion or suffer damage from such practices can file reports via the Livelihood & Safety Crime Report Center on the Official Website of the Seoul Metropolitan Government or through the "Seoul Smart Complaint Report" smartphone app.
The city explained that it decided to launch the investigation as apartment sale prices in Seoul have risen for 53 consecutive weeks, while collusion to fix home prices has been detected in online group chat rooms and similar channels, where participants pressure owners not to list properties below certain price levels.
Accordingly, investigators will focus on cases where sellers are forced to list or advertise properties at prices significantly higher than market levels, where members of certain real estate agent associations refuse co-brokerage with non-members, and where online communities are used to pressure owners not to post listings below a set price. They will also target practices in which non-existent listings are posted or advertised with the intent of unjustly driving up market prices.
Acts that disrupt the order of real estate transactions, such as collusion to fix home prices or filing false transaction reports, are punishable by up to three years in prison or fines of up to 30 million won. Licensed real estate agents who submit false transaction reports or refuse co-brokerage without justification may face cancellation of their business registration or suspension of their license for up to six months.
The city has pledged a zero-tolerance response to such "unfair practices" that threaten citizens' property rights and housing stability. In addition to its own investigations, it will work closely with the Ministry of Land, Infrastructure and Transport, the Korea Real Estate Board (KREB), autonomous districts and other related agencies to carry out high-intensity probes.
In particular, citizens who provide decisive evidence such as screen captures that clearly prove criminal acts and thereby contribute to the public interest may receive a reward of up to 200 million won, following a review. Byun Kyung-ok, Director General of the Seoul Metropolitan Government Livelihood Judicial Police Bureau, said, "Citizen reports play a decisive role in uncovering collusion to fix home prices, so we ask for active reporting and continued interest."
bng@fnnews.com Kim Hee-sun Reporter