Suspect for Speculation on Real Estate in Seoul Metropolitan Area and Jeju

National Tax Service (NTS) investigates 31,700 persons who are exposed for having speculated real estate in Seoul metropolitan area and Jeju.

Mr. A, a citizen of Incheon (45) is exposed to purchased rice field and field of 30,000 square meters in non development areas of Incheon and Shiheung-city 23 times and stirred up the price increasing. 3 youths, including 8 years old child, having no income sources are also under the investigation.

At 13th, Ministry of Construction & Transportation noticed NTS the list of 31,761 persons who have purchased real estates in Seoul Metropolitan area and Jeju more than twice from January of the last year to the end of this June.

NTS investigates the relevant persons’ occupation, income and the intension of speculation. If the fact of transaction in other’s name and avoidance of tax are revealed, NTS will impose penalty and prosecute them to police or to the prosecutory authorities.

The area of real estate purchased by the relevant persons is 7157 square kilometers (71,263 cases). It is 53 times larger than Youido and the Transaction between lot of 330 square meters and 16,599 square meters is the 24,908 cases.

However, in Seoul, 77.5% (5,607 cases) of purchasing is less than lot of 165 square meters, so small lot was the subject to speculation in Seoul.

Among them, 1,646 persons purchased real estates more than five times for the period.

Lee Jae-young, senior officer for Property Policy of Ministry of Construction & Transportation (MOCT), commented, “MOCT will monitor continually the trend of real estate market, and if a suspect of speculation is disclosed, the relevant area will be designated as ‘transaction permission area’ and prosecute the suspected persons for speculation.”

On the other side, some ones indicated why MOCT liberalized Jeju from ‘transaction permission area’ rather than reinforcing the restriction more when it announced to develop Jeju as an international city in the early of 2001.

Jae-Seong Hwang jsonhng@donga.com