Hong Nam-ki (left), Deputy Prime Minister of Economy and Minister of Strategy and Finance, together with related ministries, is returning to his seat after making an apology during the’A Word to the People on Real Estate’ held at the Seoul Government Complex in Jongno-gu, Seoul on the morning of the 7th. On the right is Byun Chang-heum, Minister of Land, Infrastructure and Transport. Joint coverage photo, Newsis
The’A Word to the People’ announced by the government on the 7th contains the willingness to sanction not only public officials related to real estate policy, but also ordinary investors against illegal activities. Real estate agents who engage in collusion or illegal brokerage, and speculators who have participated in illegal resale are also to be prepared for “return greater than profit.” However, it is pointed out that this is all about the’things in the future’, so it will not be effective right away.
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said in the announcement on the day: △An act of illegally using private and internal information to speculate △Market manipulation such as collusion that threatens the order of real estate transactions △Illegal brokerage such as false sale and cancellation after reporting Disturbing Acts △ He pointed out the so-called ‘4 major market disruptions’, such as illegal resale and unfair subscriptions that take away the opportunity to get a home.
Deputy Prime Minister Hong said, “In addition to the collection of unfair gains, we will consult with the punishment for unfair behavior under the Capital Markets Act so that more than the gains gained from criminal activities can be recovered.” The current Capital Markets Act requires imprisonment for one year or more for acts of using undisclosed stock information or disturbing the judgment of other investors, or fines equal to 3 to 5 times the gains gained from the offense.
Current Democratic Party lawmaker Moon Jin-seok has proposed an amendment to the Special Public Housing Act that requires a public housing business operator or employee of a related organization to be punished by imprisonment for at least one year and a fine equal to 3 to 5 times the profits if they use or disclose information learned during work. It has been proposed, but the subject of such punishment could be wider.
The government also announced plans for illegal actors to exit the market. It is intended to prevent illegal offenders from entering the real estate market by restricting employment of real estate-related agencies and obtaining licenses for real estate-related businesses in accordance with the Specific Economic Crime Act. In addition, if a speculative transaction related to the third new city is confirmed, the source of funds, as well as tax evasion, and compliance with the loan regulations were also decided to be investigated.
However, skepticism is also difficult. Even if the punishment is strengthened, it cannot be applied retroactively, so it is difficult to apply it to speculation in the 3rd new city. In fact, under the current Public Housing Special Act, a fine of up to 50 million won is all that even if you use undisclosed information. It is pointed out that even if the law changes, it will still not be easy to apply if the information is obtained and invested from those who did not know the information during work.
The government plans to meticulously discuss detailed measures to prevent market disruption at the ministers’ meeting on the 10th. Deputy Prime Minister Hong said, “We will remove illegal, expedient, and unfair behavior and make the real estate market function normally.”
Sejong = Park Se-in reporter [email protected]
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