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42.3 Billion Won Collected from Real Estate Speculators

Posted June. 11, 2003 21:47,   


The National Tax Service collected some 42.3 billion won that was previously earned by 1836 real estate speculation suspects all over Korea today.

The NTS also are focusing on three illegal real estate agencies known to have promoted speculation for tax evasion, and revoked the business licenses of some 141 real estate agents who violated real estate agency laws by lending their licenses to other parties.

“We mobilized some 3000 tax investigators to force compliance with tax policy among real estate speculators to stabilize the real estate market.”

As a result, some 10.2 billion won worth of taxes were collected from some 600 tax evaders who traded apartments or land for the purpose of speculation from last October to this January.

For 12 illegal real estate agencies alleged to have promoted speculation on the market, the NTS launched a close investigation and collected 10.5 billion won. In the process, it prosecuted three major violators for tax evasion.

Those charged bought soon-to-be-developed land at low prices instead of land financiers and attracted individual investors through meetings or telemarketing to resell the land at double or triple the price, thereby gaining enormous profit from the trades.

Investigations against house transfer taxes and capital sources held by local tax services and tax offices collected 20.4 billion won from some 424 tax evaders.

Some 89 real estate agencies that violated related laws by promoting illegal practices such as selling non-registered real estate and writing double contracts will also be prosecuted by related authorities.

Jin-Hup Song jinhup@donga.com