(1) Reasons for Proposal
The Act on Report on Real Estate Transactions, etc., was amended (Act no. 16494; promulgated on August 20, 2019; to be enforced on February 21, 2020) to reduce the reporting deadline for real estate transaction agreements (from 60 to 30 days), prescribe compulsory reporting of revocations of real estate transaction agreements, prohibit the reporting of false agreements, newly insert rights to authorize the Ministry of Land, Infrastructure and Transport to investigate the content of transaction reports, investigate matters reported by foreigners, and prescribe grounds for measures against violations of other laws. Accordingly, this Amendment stipulates matters concerning the entrustment of investigation authority, prescribes criteria for imposing administrative fines, specifies information necessary for investigations, adds matters subject to reporting on a foreigner's acquisition, modifies the criteria for monetary rewards and standards for voluntary reporting, and otherwise prescribes matters delegated by the Act and matters necessary for the enforcement thereof, and addresses weaknesses, etc., in the operation of the system.
(2) Major Provisions
A. Requests for information provision (Article 4-2) Allow the Minister of Land, Infrastructure and Transport and report-receiving authorities to request information on national taxes, regional taxes, etc., from the heads of the relevant institutions to investigate reported matters under Article 6, paragraph 4 of the Act.
B. Newly insert matters subject to reporting on the acquisition of newly constructed buildings, etc., by foreigners (Article 5 paragraph 1, subparagraph 4) Prescribe that where a foreigner, etc., acquires a newly constructed building, etc., under Article 8, paragraph 2 of the Act, it shall be construed as a non-contractual acquisition and shall be reported within 6 months of the date of acquisition.
C. Clarify provisions on the residential address of persons obtaining a land transaction permission (Article 10, paragraph 2) Clarify unclear matters concerning whether a person who intends to acquire land under Article 12, subparagraph 1, item G of the Act and Article 10, paragraph 2, subparagraph 2 of the Decree “shall reside in the Special City, etc., to which the area subject to permission belongs.”
D. Monetary rewards for reporting newly prohibited acts (Article 19-2, paragraphs 1 and 3) Prescribe that where an administrative fine is imposed for a false report under Article 28 of the Act due to a report on the person who filed the false report under Article 25, paragraph 1, subparagraph 1-2 or 1-3 of the Act, an amount equivalent to 20 percent of the administrative fine imposed shall be paid as a monetary reward.
E. Delegation or entrustment of authority (Article 19-4, paragraph 1 and paragraph 2, subparagraph 3) Prescribe that investigations of reported matters by the Ministry of Land, Infrastructure and Transport under Article 6, paragraph 3 of the Act shall be outsourced to the Korea Appraisal Board under the Korea Appraisal Board Act.
F. Criteria for imposing administrative fines (Article 20) Prescribe criteria for imposing administrative fines in accordance with the reduced reporting deadline for real estate transaction agreements, introduction of reports on the revocation of real estate transaction contracts, and newly inserted prohibited acts.
G. Criteria for reduction or exemption for voluntary reporters (Article 21) As Article 6, paragraph 3 of the Act allows the Minister of Land, Infrastructure and Transport to conduct investigations, include the Minister of Land, Infrastructure and Transport in the scope of investigation entities and allow the Minister to file voluntary reports after an investigation has commenced.
