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SEOUL – The Ministry of Land, Infrastructure and Transport (MOLIT) announced on Wednesday that it has uncovered 1,002 suspicious real estate transactions involving illegal gift-giving, price manipulation, and loan misuse following a comprehensive investigation into contracts signed between January and August this year.

Among the most egregious cases was a sibling pair in South Gyeongsang Province, aged just eight and four, who acquired 25 apartments and villas totaling 1.67 billion won. The purchases, orchestrated by their father, primarily utilized "gap investment" strategies, where the buyer uses the tenant's security deposit to fund the acquisition. Authorities have flagged this case for potential tax evasion and expressed concerns over "jeonse" fraud, as the minor owners lack the financial capacity to return deposits to tenants.

In another instance, a buyer purchased a luxury apartment in Seoul for 13 billion won, reportedly financing 10.6 billion won through an interest-free loan from their father. Such transactions are viewed as "disguised gifts" intended to bypass inheritance and gift taxes. Furthermore, a buyer in Gyeonggi Province is under investigation for allegedly diverting a 700-million-won corporate operating loan from a community credit union to purchase a 1.75-billion-won residence.

The investigation also highlighted deceptive market practices. A husband and wife were caught in a "price-pumping" scheme, where they signed a sham contract at a record-high price of 1.65 billion won only to cancel it later, facilitating a subsequent sale by a related corporation at a higher price of 1.8 billion won. Additionally, several newly built apartments in Seoul were reported at prices 600 million to 800 million won lower than market value, a practice known as "down-contracting" used to reduce tax liabilities.

"These illicit activities distort the housing market and threaten the stability of the rental system," a Ministry official stated. The government has forwarded the findings to the National Tax Service, the National Police Agency, and the Ministry of the Interior and Safety for further investigation and prosecution.