Fraud and speculation by real estate investment fraudsters must be stopped

As the government rolls out various development policies across the country to gather votes in the run-up to the general election, real estate investment fraud is on the rise. A scam in which land that is difficult to develop is purchased at a low price, its development potential is exaggerated, and the land is divided and sold at a high price. In addition, a speculative mood is emerging, with unscrupulous real estate agents attempting to take advantage of government announcements regarding development plans to inflate prices. There are growing concerns that the government’s pork barrel policy could distort the market and cause further damage.

The Dong-A Ilbo analyzed the 10 cities, counties, and cities that had the most land transactions in the metropolitan area during the first nine days of this month. The analysis revealed that these areas are concentrated in Hwaseong City, Pyeongtaek City, Yongin City, and Yangpyeong City in Gyeonggi Province, where the government’s regional development policies such as railways, roads, and industrial parks are concentrated. Land transactions in these areas were primarily conducted in 28 parcels, with each parcel divided into an average of 15 parcels prior to sale. In the case of forest fields in Hwaseong City, Gyeonggi Province, an additional 59 people purchased equity in the fields this year, bringing the number of land owners to 93, and the land area per person is equivalent to 21 square meters.

The government recently unveiled its development policy package through a presidential public forum. On January 10, the government announced that it will allow condominiums built 30 years ago in Goyang City, Gyeonggi Province, to be rebuilt without safety inspections. On January 25, Uijeongbu City in Gyeonggi Province proposed a plan to build a new metropolitan area high-speed railway (GTX) and move existing railways underground at a cost of 134 trillion won (approximately US$101 billion). On February 21, the government promised to lift development restrictions on green belts (development-restricted areas) in Ulsan metropolitan areas outside of Seoul and ease restrictions on absolute agricultural land. Five days later, Seosan City, South Chungcheong Province announced that it would lift a military facility protection zone nationwide, which is 117 times the size of Yeouido in Seoul.

The government’s announcement resembles the rhetoric of property investment fraudsters. The government has said, “We will ease regulations on redevelopment and reconstruction” “You have been demanding that the green belt regulations be lifted, but there is no need to worry” “Just sing a song or two (from Incheon) and you will be fine.” “It is,” he says. in Seoul,” stimulating speculative demand. Real estate fraudsters and speculators use official government announcements as evidence, making it difficult to prove fraud and hold people accountable later.

Contrary to the government’s promises, it is virtually impossible to implement all these development policies at once after the general election. Many of them have no funding or legal backing, so they will eventually disappear after the election. The government needs to carefully consider the practicality, necessity, and potential side effects, such as real estate speculation, before proceeding with its introduction. The government should crack down on real estate fraud and speculation. Policies should not be implemented as if they were “floating real estate investment scammers” by effectively encouraging speculation with promises of uncertain or, at best, unrealizable good news.