NTS, to reinforce money source into speculative fund groups

The National Tax Service is launching tax probes into Gangnam area of southern Seoul, and has decided to reinforce capital chasing in cooperation with the Financial Supervisory Commission under the estimation that there are many cases of apartment speculation through mortgage lending.

It will also thoroughly investigate those who are in the habit of real estate speculating by means of making funds, whether by reselling apartments without registration or violating real name transaction policy.

“Investigation of sources of money into the speculation suspects proved that 67 percent of all people acquiring properties loaned out with mortgage from banks, 6 percent of these people lent money with an excess of the mortgage lending limit (50 percent) that the Financial Supervisory Service had set, “Lee Yong-sup, commissioner of the National Tax Service said yesterday through a phone interview with our member reporter.

The Financial Supervisory Commission decided to reinforce to control mortgage lending such as disciplining bank workers who violated lending limit as soon as it was informed of these.

The National Tax Service is performing reinforced tax probes into 448 people who were suspected of having made speculative real-estate transactions using money from unclear sources among people acquiring reconstruction, residence-commerce complex and high price apartment in Gangnam, Seocho, Songpa, and Gangdong district in southern Seoul.

“There are some professional buying groups boosting prices, making funds, selling and buying apartments,” said Commissioner Lee, and added, “We are in the process of grasping the buying groups and brokers who are fostering price increases.”

“We will finish the tax probes into Gangnam area by November 13 as planned,” he said, and added, “We are considering if we announce the half-finished results around October 29 when general measures on the real estate of the government will be announced.”

Lee was quoted as saying that they already launched tax probes into the companies disclosed after giving illegal money, and they would start tax audits into the tax affairs broker as well as those who take and give bribes.

Prior to this, Lee had sent a letter informing “reinforced tax probes into the companies giving bribes or asking to do favors” to seven people including five economic organization chiefs such as Son Gil-seung, chairman of the Federation of Korean Industries, the chairman of the Licensed Tax Accountant Groups of Korea and the Certified Public Accountants Groups on September 23.

Ji-Wan Cha cha@donga.com