Special Tax Investigation of Land Speculators in Kimpo and Pahjoo Areas

The National Tax Service plans to launch a special probe into those who have sold or bought more than 6,600 square meters of land twice or more since this April in Kimpo and Pahjoo area—the two areas where new cities are to be built in.

Also subject to the special investigation are 34,744 people who are suspected of speculating land from last July to this March in the Seoul Metropolitan area or in Choongchung Province where the national capital is supposed to move in.

The Ministry of Construction and Transportation official Ryoo Yoon-ho confirmed yesterday, "To prevent the expected land speculation in the new cities, we will ask the National Tax Service to conduct a special investigation into a certain group of people. We will hand over the list at least by August." According to Ryoo, the investigation will target a person who has sold or bought a land of at least 6,600 square meters within two to three months without filing a recording with the court.

The Ministry of Construction and Transportation spent the whole month of April to build up a database recording all real estate transitions in the regions.

The ministry has already notified the National Tax Service of 34,744 people suspected of having engaged in real estate speculation in the Seoul metropolitan and Choongchung areas.

Out of 34,744, 23,854 purchased land twice or more, 12,005 bought more than 6,600 square meters of land each, and 239 are minors who have no economic power to purchase land.

Among them, for example, a three-year old is included, since the kid purchased more than 52,800 square meters of land in Boryung City, South Choongchung Provicne.

On the other hand, the authorities previously notified 5,801 people of them on the list that they had been under close watch. Nonetheless, they are suspected of having conducted land speculation thereafter.

The National Tax Service will classify them into various subcategories and will examine to determine whether they have evaded tax.

Jae-Seong Hwang jsonhng@donga.com