Housing lottery craze brings back illegal ‘facilitators’ with no crackdown in sight

[Anchor]

Recently, there has been a surge in the so-called 'housing lottery' craze in the Gangnam area of Seoul, where people are reportedly making hundreds of millions of won in margin profits.

Areas like Gangnam district 3 and Yongsan are designated as highly speculative zones, and come with regulations such as resale restrictions.

However, facilitation of illegal transactions has been captured by KBS cameras.

Reporter Kim Ga-ram has the story.

[Report]

A model house for newly built apartments in Seocho-gu, Seoul.

Due to the application of the price ceiling system, the apartments were sold at prices more than 500 million won lower than nearby apartment market prices.

[Winning applicant for 84㎡ : "(What score did you win with?) 69 points. (The maximum score for a family of four) Yes."]

On the way out of the model house.

[Facilitator A : (voice altered) "If you have any difficulties, it would be good to give me a call. There are people who want to buy this (ownership right)...."]

They claim they can sell the owndership rights, which are prohibited from any transactions for three years.

[Facilitator A : (voice altered) "(There is a three-year resale restriction.) You can rent it out. It's almost the conditions of a resale."]

They are suggesting making a sales contract for the ownership rights disguised as a lease.

In front of the promotional center of another apartment brand in Seocho-gu, Seoul.

Suspected as a prospective winner, another 'facilitator' approaches.

[Facilitator B : (voice altered) "You came for the lottery, right? Are you thinking of selling (the ownership right)?"]

The winner of the lottery for this apartment is prohibited from selling the ownership rights for three years and is also required to personally reside in the apartment.

[Facilitator B : (voice altered) "You can sell it for a premium. (But there is a residency obligation.) It's okay. Even your loan interest will be covered."]

I contacted the phone number on the business card.

They explained that the winner just needs to register a false residence.

[Facilitator C : (voice altered) "You (the lottery winner) make everything look like you live there. So all phone, mobile, and internet services would be registered under your name."]

They claim that selling the owndership rights could yield hundreds of millions of won in profit, and even taxes would be paid for.

[Facilitator C : (voice altered) "Simply put, you receive 400 million won in cash. So it's money that doesn't show up. The capital gains tax and registration tax are paid by that person (the buyer), which amounts to nearly 1 billion won."]

Is there any enforcement happening?

[Ministry of Land, Infrastructure and Transport official/voice altered : "(Facilitators) need to be monitored in the market, and enforcement needs to be looked at separately."]

These 'facilitators' have returned after two years.

[Park Won-gap/Chief Real Estate Expert at KB : "(For actual demanders) it means they have to buy their homes at much higher costs by paying premiums, which is a serious issue."]

This is KBS News, Kim Ga-ram.