Reasons for Proposal
The house is not a speculative object or a means to increase assets but a bowl of lives. A house is a haven for life that contains joy, anger, sorrow, and pleasure, as well as a minimal space for life where you can lie down and rest.
The Constitution of the Republic of Korea stipulates that the State shall endeavor to ensure comfortable housing for all citizens through housing development policies and the like. Accordingly, the government has been promoting real estate policy under the major principle of protecting the dignity and values of human beings and stabilizing people's housing, not a means of stimulating or controlling the economy. In particular, real estate is a core sector of the national economy, accounting for 75% of Korea's household assets, and thus, the most important policy goal for real estate is to establish a fair and transparent market order.
Yet under the false perception that “Real Estate Never Fails,” however, Illegal and expedient disturbances by some speculators are hindering end users' ownership scheme and the formation of housing ladders for newlyweds and young people.
In the meantime, the investigation system has been reinforced with the Real Estate Market Illegal Behavior Response Team, and the Real Estate Transaction Analysis Planning Team has been established to protect end-users and eradicate speculators, but there are limitations in personnel and authority to respond quickly and effectively to new disturbing behaviors that are becoming increasingly specialized, complex, and divergent.
Therefore, this amendment aims to improve the regulatory order system for real estate transactions to eradicate unfair behaviors and market disturbances and, ultimately, to firmly lay the foundation for stabilizing people's housing by providing the grounds for the establishment of the Real Estate Transaction Analysis Institute that conducts actual investigations of transactions and abnormal transaction analysis as an agency belonging to the Ministry of Land, Infrastructure and Transport to secure greater transparency of the real estate market.
Details
A. Prohibition of market manipulation (Article 24)
Prohibit any person from registering any false asking price with no intention of a real transaction on the information and communication network directly or through a licensed practicing real estate agent, reporting any false transaction with wash sales without any intention to transfer ownership, or conducting actions that attempt to unfairly influence the market price by fixing transaction prices of real estate, etc., using notices, online communities, etc.
B. Prohibition of the dissemination of false information (Article 25)
Prohibit anyone from disseminating any false development information in neighboring areas, undetermined Urban and Gun management plans, intentionally distorted supply and demand status, etc., to many and unspecified people for the purpose of inducing transactions by causing others to make a wrong judgment.
C. Prohibition of unfair labeling and advertising activities (Article 26)
Require any person who intends to label or advertise transactions in real estate, etc. to specify matters such as location, area, price, etc., of the real estate, and prohibit anyone from labeling or advertising which includes false offerings, false or exaggerated prices, etc., so that it may harm the real estate transaction order.
D. Prohibition of undisclosed development information (Article 27)
Prohibit any former and current employee of any institution or business entity related to the implementation of a project that may expropriate land pursuant to the Act on Acquisition of and Compensation for Land, Etc. For Public Works Projects or the establishment of a zone or district pursuant to the Framework Act on the Regulation of Land Use from revealing undisclosed development information related to the affairs of the relevant institution or business entity or using it for transactions of real estate, etc., or allowing others to use it, etc. Also prohibit those who have obtained information from the relevant employees from engaging in such dealings.
E. Electronic contract system and conclusion procedures (Articles 28, 29, and 30)
Require the Minister of Land, Infrastructure and Transport to establish and operate an information system for transaction contracts of real estate, etc., and stipulate the procedures for concluding electronic contracts and matters related to actual transaction reporting, to support the people's safe and convenient real estate transactions and to maintain sound real estate transaction order.
F. Obligation to conclude electronic contracts (Article 31)
Require right settlement contracts for public housing under the Special Act on Public Housing, private rental housing under the Special Act on Private Rental Housing, real estate in areas where the reselling of land or houses is restricted or land transaction permission zones, contracts for land for relocation measures or land for land provision compensation, or otherwise transaction contracts for real estate, etc., in areas where the need to transparently manage contract information for real estate, etc., is recognized to be concluded using an electronic contract.
G. Establishment of the Real Estate Transaction Analysis Institute (Article 36)
Require that Real Estate Transaction Analysis Institute be established under the Ministry of Land, Infrastructure and Transport to carry out affairs such as the analysis, verification, and investigation of violations of laws related to real estate, the request of investigation to investigation agencies, the management and analysis of real estate transaction information, and cooperation with other investigative agencies related to real estate crime, among matters that have received a transaction report on real estate, etc.
H. Provision of information to relevant agencies (Article 37)
Allow the head of the Real Estate Transaction Analysis Institute to provide the necessary information to the Minister of the Interior and Safety, the Commissioner of the National Police Agency, the Commissioner of the National Tax Service, the Financial Services Commission, or the Governor of the Financial Supervisory Service if he/she deems it necessary for the investigation of criminal cases, investigation of tax evasion, collection from tax defaulters, and financial supervision affairs related to real estate transactions.
I. Request for data, etc. (Article 38)
To confirm the adequacy of financing in the process of investigating the details of a report following a transaction report on real estate, etc., allow the head of the Real Estate Transaction Analysis Institute may request the heads of the relevant administrative agencies for the provision of business registration information and tax information, and the heads of the financial companies, etc. for the provision of financial transaction information and credit information to the minimum extent required and require the information provided to be managed pursuant to the Personal Data Protection Act.
