Luring a property deal with false 'development is coming' information — up to one year in prison — effective 17 December 2026 | fine up to ₩20M
From 17 December 2026, spreading false information about nearby development, presenting an unconfirmed development plan as confirmed, or deliberately distorting supply, demand or price conditions in order to lure someone into a property transaction is prohibited. Violators face up to one year in prison or a fine of up to ₩20M. The provision begins with 'no person', so it covers ordinary people as well as brokers.
Conditions used in the video
- Effective date
- 2026-12-17
- Promulgated
- 2026-06-16
- Basis
- Real Estate Transaction Reporting Act Article 23-2 (new) · Article 26(4)
- Element
- purpose of luring a transaction
- Who
- any person (ordinary people as well as brokers)
- Penalty
- up to one year in prison or a fine of up to ₩20M
Results
- Penalty
- up to one year in prison or a fine of up to ₩20M
- Prohibited ①
- false information about nearby development
- Prohibited ②
- presenting an unconfirmed development plan as confirmed
- Prohibited ③
- deliberate distortion of supply, demand or price conditions
- Separate provision
- gain from a false report: up to three years in prison · fine up to ₩30M (Article 26(1))
Why it works this way
Today, luring someone into buying with lies such as 'a station is coming' or 'development is confirmed' has no provision in the Real Estate Transaction Reporting Act that punishes the act itself. It must be pursued as fraud under other laws, and the luring statement was outside this Act.
Real Estate Transaction Reporting Act Article 23-2 (effective 2026-12-17).
- ①false information about nearby real estate development
- ②presenting an unconfirmed urban planning facility or development plan as confirmed
- ③deliberately distorting supply, demand or price conditions (calling the uncertain certain)
All three require the purpose of luring a transaction.
The penalty is up to one year in prison or a fine of up to ₩20M. The existing provision punishing gain from a false transaction report, up to three years in prison or a fine of up to ₩30M, is separate; the new one targets the false information used to lure the deal.
The provision begins with 'no person'.
- Brokerscovered
- Sellers and landlordscovered
- Ordinary people, community postscovered if the purpose is to lure a deal
Presenting something uncertain as certain also counts as distortion.
This video and page describe a measure that has been promulgated but has not taken effect. Details may change through a decree or notice.
In short, from 17 December 2026 luring a property deal with false development claims is an offence under this Act, punishable by up to one year in prison or a fine of up to ₩20M.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Real Estate Transaction Reporting Act Article 23-2 (Prohibition on spreading false information)
In force Effective 2026-12-17 (promulgated 2026-06-16; Addenda)
No person shall, for the purpose of luring a real estate transaction, spread ① false information about nearby real estate development, ② information presenting an unconfirmed urban planning facility or other development plan as confirmed, or ③ information deliberately distorting the supply, demand, price or other conditions of real estate.
What this means
A false development claim becomes an offence under this Act. Whether the speaker is a broker is not asked.
Real Estate Transaction Reporting Act Article 26(4) (Penalties)
In force Effective 2026-12-17
A person who spreads false information in violation of Article 23-2 is punished by imprisonment of up to one year or a fine of up to ₩20M.
What this means
A criminal penalty, not an administrative fine. It is distinct from the three-year, ₩30M provision for gain from a false report (Article 26(1)).
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Frequently asked
Are only brokers punished?
No. The provision begins with 'no person', so sellers, landlords and ordinary people who spread false information to lure a deal are covered.
Is mentioning an unconfirmed plan always an offence?
It is presenting the unconfirmed as confirmed, or the uncertain as certain. Saying truthfully that something is 'under review' is different.
I heard of a ₩30M fine?
That is the existing provision for gaining property through a false transaction report: up to three years in prison or a fine of up to ₩30M. The new provision is separate, with up to one year or ₩20M.
Does inflating the market price count?
Yes, if a deal is lured with information that deliberately distorts supply, demand or price conditions.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.