Suspected illegal property transactions referred to authorities reached a record high of nearly 10,000 cases last year. Of those, cases sent to the National Tax Service over improper gifts or falsely reported prices nearly doubled in a single year, concentrated in the greater Seoul area. As housing demand tilts heavily toward the capital region, illegal and improper practices are being deployed along with it.
According to data on abnormal property transaction investigations from 2021 to 2025, submitted by the Ministry of Land, Infrastructure and Transport to the office of Rep. Yoon Jong-gun of the Democratic Party of Korea, a member of the National Assembly's Land, Infrastructure and Transport Committee, the ministry examined a record 18,025 transactions last year and referred 9,895 suspected violations to relevant agencies. The ministry sorts suspected violations by type and refers them to bodies including the National Tax Service, the National Police Agency, the Financial Services Commission, local governments and the Korea Customs Service.
Cases referred to the National Tax Service on suspicion of tax evasion or improper gifts nearly doubled to 4,108 last year from 2,595 in 2024. The share accounted for by the greater Seoul area rose sharply to 91.3%, or 3,750 cases, in 2025 from 78.8%, or 2,045 cases, in 2024.
Weekly sale price indexes from the Korea Real Estate Board show Seoul apartment prices rose 4.5% to 87.26 in the last week of December 2024 from 83.47 in the first week of January 2024. By comparison, prices climbed 8.7% to 94.86 in the last week of December 2025 from 87.26 in the first week of January 2025, a far steeper gain. The increase in referrals also appears to reflect government investigations focused on areas where housing demand has concentrated.
Home price gains have recently spread beyond Seoul to Gyeonggi Province and Incheon, and additional designations of regulated zones are seen as possible. Observers expect suspected violations in greater Seoul property transactions to become more frequent. Nam Hyuk-woo of the Woori Bank real estate research institute said improper cases can increase when the market is strong or overheated because buyers run up against limits on their ability to raise funds.
Yoon said investigators had uncovered not only improper gifts but even signs of property deals financed by illegally brought-in overseas funds. The government must strengthen its joint response system among relevant agencies and root out abnormal property transactions and illegal practices through closer scrutiny and tougher penalties, he said.
