Gyeonggi Province Uncovers 69 Illegal Real Estate Brokerage Cases
Gyeonggi Province announced on the 23rd that it had conducted joint inspections of 527 licensed real estate brokerage offices across the province to create a safe real estate brokerage market and prevent jeonse fraud, uncovering 69 violations at 67 offices and taking administrative measures and investigation referrals.
The province conducted joint inspections with municipal and county governments and the Safe Jeonse Management Committee from April 27 to June 19. Inspection targets were established through consultative meetings with municipal and county governments and the Safe Jeonse Management Committee.
As a result of the inspections, the province took 49 administrative measures including 2 registration cancellations, 1 credential suspension, 18 business suspensions, and 28 fines, while referring 9 cases for investigation. The remaining 11 cases resulted in warnings or corrective measures.
Major violations included failure to prepare, deliver, and maintain target property confirmation and description documents, missing signatures and seals, failure to report employment and termination, and advertising violations. Serious violations such as lending registration certificates, unlicensed brokerage, and collection of brokerage fees exceeding legal standards were also identified.
Particularly notable were cases where brokers failed to properly explain whether landlords of properties registered in trust had authority to lease them and whether other collateral or priority rights were set. Cases where renters suffered losses in deposit guarantees because the changes in property rights before final payment were not rechecked were also uncovered.
In addition to inspections of illegal activities, the province examined whether 1,057 licensed real estate brokerage offices participating in the "Gyeonggi Safe Jeonse Project" were implementing required practices. Results showed that 933 offices or 88.3% were implementing required practices, with 770 rated as excellent and 163 as satisfactory. 101 offices showed insufficient implementation and 9 were non-participating, while 14 offices were classified under other reasons such as closure or suspension.
The Gyeonggi Safe Jeonse Project is a public-private cooperation initiative that requires licensed real estate brokers to guide tenants on confirmation items before contracts and to identify jeonse fraud risk factors during the contracting process. During this inspection, the province guided brokerage offices with insufficient implementation or non-participating in the project on practical implementation methods needed at the actual contracting stage, such as providing tenant checklists, explaining mandatory special provisions, and rechecking property rights changes after contracts.
Separately from this inspection, Gyeonggi Province and Yongin City conducted joint inspections from May to June in the Yongin Semiconductor Cluster development area where real estate transaction overheating was a concern, referring 3 cases including 2 suspected unlicensed brokerage activities and 1 suspected double registration for investigation. Four cases such as closed brokerage offices failing to remove signboards or post mutual aid certificates were corrected on-site or subject to administrative guidance.
Shon Im-sung, director of the Urban Housing Division of Gyeonggi Province, said, "We will continuously monitor the actual implementation of the Safe Jeonse Project so it takes root in the field and respond strictly to illegal activities in brokerage processes. We will create a transparent and safe real estate brokerage environment where residents can conduct transactions with confidence."