"I Wrote the Copy With AI, but It Was an Illegal Ad": Seoul Refers Two Unlicensed Real Estate Advertisers to Prosecutors

[Financial News] A new employee and a part-time worker who posted online advertisements containing specific transaction terms, including commercial property security deposits and rents, without being licensed real estate agents have been referred to prosecutors. Even when such work is regarded as routine advertising or the copy is written with generative artificial intelligence (AI), an unlicensed person who displays or advertises real estate transaction terms may face criminal punishment. Caution is advised. The Seoul Metropolitan Government's Special Judicial Police Bureau for Citizens' Livelihood said on the 5th that it referred two people to prosecutors last month on suspicion of violating the Licensed Real Estate Agents Act after they displayed or advertised real estate transaction terms online without being practicing licensed real estate agents.
Those caught were a new employee and a part-time worker in their 20s and 30s who had not worked in real estate brokerage. Investigators found that they posted online advertisements at the direction of business superiors or at the request of acquaintances without receiving separate training on real estate-related laws.
Person A, who was in their 20s, was caught while carrying out online advertising work assigned by a superior after joining a consulting company. Earning about 1.5 million won per month, A introduced hospital properties for lease in Seodaemun District and Gangdong District. The posts contained specific terms of the leases. During the investigation, A stated that they had not known in advance that the posts could constitute violations of the law.
In another case, Person B, who was in their 30s, posted notices on online communities and elsewhere offering restaurants for sale or transfer at the request of an acquaintance. B was paid 10,000 won per hour and 200 won per post. Generative AI was even used to create the advertising copy. Investigators found that B, too, had not been aware that posting material containing real estate transaction terms without the required qualifications could violate the Licensed Real Estate Agents Act.
The current Licensed Real Estate Agents Act prohibits anyone other than a practicing licensed real estate agent from displaying or advertising properties subject to brokerage. Even an advertisement to transfer a store or business may constitute a legal violation if it also lists specific real estate lease terms, such as a security deposit and monthly rent. An unqualified person who places such advertisements for brokerage purposes may face up to one year in prison or a fine of up to 10 million won.
Following this case, the Seoul Metropolitan Government plans to propose institutional improvements to strengthen the responsibility of business owners who direct or commission advertisements. The proposed measure would allow business owners who instruct employees to post illegal material to face the same sanctions when the posts are made at their direction.
The Seoul Metropolitan Government will also step up its crackdown on illegal real estate advertisements. It has investigated acts that disrupt the order of real estate transactions through citizen reports, complaints, requests for investigations by relevant agencies and online monitoring. Going forward, it plans to focus on unqualified real estate listings and advertisements posted on online communities and other platforms.
Lee Chang-seok, head of the Seoul Metropolitan Government's Special Judicial Police Bureau for Citizens' Livelihood, explained, "If an unqualified person posts online real estate advertisements for properties subject to brokerage while including specific terms such as a security deposit and monthly rent, they may face criminal punishment. Business owners should fully explain the relevant laws before assigning advertising work to employees, and workers themselves should carefully review the advertising content before posting it so they do not suffer consequences from an unintended violation of the law."

[email protected] Seong Cho-rong Reporter