Reasons for Proposal
Last year, there were 7,263 violations of real transaction value reports, which was approximately an 80% increase compared to 3,884 in 2016. Regarding this, the Ministry of Land, Infrastructure and Transport said that this was the result of a 3-month crackdown effort backed by a joint investigation team with relevant organizations such as National Tax Service, Korea Appraisal Board, National Police Agency, Financial Supervisory Service, etc. As such, there is a need to prevent violation of real estate reporting duties by enabling routine execution of joint investigations among relevant authorities.
Additionally, the Ministry of Land, Infrastructure and Transport is deleting certain data from the real transaction value system such as contract termination or data error, without providing any explanation. The details of such deleted information are not released and the people cannot see which contracts had been deleted, even though such deletion may have affected the housing market at the time of reporting. This has the potential of being exploited by speculative groups, creating confusion in the housing market.
Therefore, this proposal seeks to provide a basis upon which a more transparent real estate market may be established by shortening the reporting deadline from the currently-enforced sixty days to fifteen days, and by requiring the release of details for not just concluded contracts but also deleted contracts which had been deleted due to termination/rescission/voidance.
Details
A. Require the reporting of transactions to the report-receiving authority for not just concluded contracts but also void, terminated or rescinded contracts; and shorten the current reporting deadline of sixty days to fifteen days (Article 3, paragraph 1, part of main sentence except each subparagraph)
B. Where the Ministry of Land, Infrastructure and Transport recognizes it as necessary for effective investigation into report contents, enable the execution of joint investigations among report-receiving authorities and relevant administrative organizations as specified by Presidential Decree (Newly insert Article 6, paragraph 3)
Major Provisions
Require the reporting of transactions to the report-receiving authority for not just concluded contracts but also void, terminated or rescinded contracts; shorten the current reporting deadline of within sixty days to within fifteen days (Article 3, paragraph 1)
