‘Low-priced apartments sweeping away’ by corporations and foreigners… Intensive purchase planning investigation

The actual transaction price is ‘about 140 million won’
Corporate acquisitions more than tripled this year
Enforcement of violations such as up/down contracts

The government will intensively crack down on illegal speculation on apartment transactions under the published price of 100 million won or less under the names of corporations and foreigners, which have increased rapidly this year. Converted to the actual transaction price, it is expected that apartment transactions of around 140 million won will be the target.

The Ministry of Land, Infrastructure and Transport announced on the 10th, “We will start a plan investigation for actual transactions targeting cases in which corporations and foreigners intensively purchase apartments (low-priced apartments) with a published price of 100 million won or less.”

In this year’s state audit, it was pointed out that corporations and foreigners are sweeping away low-priced apartments to avoid heavy acquisition tax. According to the Ministry of Land, Infrastructure and Transport, the total transaction volume of low-priced apartments for about 14 months from July last year to September this year was 246,000. Of these, 21,000 transactions (8.7%) were purchased by corporations (about 6,700) and 80,000 transactions (32.7%) were purchased by foreigners (about 59,000). In particular, the proportion of corporate acquisitions more than tripled from 5.0% in April this year to 17% in September.

The Ministry of Land, Infrastructure and Transport is planning to conduct an investigation by selecting abnormal transactions after comprehensively reviewing the financing plans, sellers and buyers, and transaction price for transactions of corporations and foreigners who purchased low-priced apartments from July of last year to August of this year. The survey will run for three months until January next year. In the case of apartments, considering that the realization rate of the published price (the ratio of the published price to the actual transaction price) is about 70%, it is expected that apartments with an actual transaction price of 140 million won or less will be investigated.

The Ministry of Land, Infrastructure and Transport said, “If it is found that there is a violation of related laws, such as up/down contracts, expedient donations, and title trusts, we will notify relevant agencies such as the National Police Agency and take strict action.”

Reference-www.khan.co.kr

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