National Tax Service Investigating Speculation in 19 Areas Including Gangnam and Bundang

The National Tax Service has deployed special teams in places where the prices of real estate have surged, such as Gangnam in Seoul and newly developed areas in Bundang in Gyeonggi, to prevent real estate speculation. The agency said on May 3 that it designated 19 areas nationwide such as Gangnam-gu, Seoul as “prospective places for property speculation” where the prices of houses and land have jumped this year, and that it has sent 212 agents out to conduct field surveys. The center also announced that it has gradually conducted research on irregularities starting in April, and that it has obtained data about some suspects wanted for real estate speculation.

Among the 19 chosen areas where investigators believe speculation is highly possible are Secho-gu, Gangnam-gu in Seoul, Gwacheon City in Gyeonggy, Bundang-gu in Seongnam City, Yeongi-gun, Gyeryong City, and Gongju City in Chungnam which all recorded high increases in prices. Housing prices in Gwacheon City and Seongnam City surged more than 3.6 percent in April alone, and the increased rate of land prices in Yeongi-gun in Chungnam registered 9.6 percent in March alone.

The National Tax Service is planning to conduct special investigations of relevant people and middlemen involved in suspicious deals, and look into the sources of capital used to fund the transactions.

Eun-Woo Lee libra@donga.com