A fraudulent subscription does not end with the award being cancelled
Where conduct disturbing the supply order is found, the supply contract is cancelled, subscription eligibility is restricted for up to ten years, and imprisonment of up to three years or a fine of up to ₩30M may follow.
Conditions used in the video
- Basis
- 주택법 제65조·제101조
- Points for dependants
- 35 (the largest of the three items)
- Points for time without a home
- 32
- Points for the subscription account
- 17
- Full inspection
- announced 2026-05-11
Results
- Supply contract
- cancelled
- Restriction on subscription eligibility
- up to 10 years
- Imprisonment
- up to 3 years
- Fine
- up to ₩30M
- Where the gain is large
- up to three times the gain
At a glance
How the 84 subscription points are made up. Dependants carries the most, and with it the greatest incentive to manipulate.
- Number of dependants35 points
the item the 2026-05-11 full inspection targets
- Time without a home32 points
- Time holding the subscription account17 points
Why it works this way
Subscription points run to 84, and of those the number of dependants carries the most at 35. Another explainer here has said that this item is where it is won or lost. That statement has a reverse side: carrying the most points also means carrying the greatest incentive to manipulate.
On 11 May 2026 the government announced a full inspection of award winners who had received near-perfect scores on implausibly large family compositions. Full marks call for six or more dependants, and the inspection targets cases where that figure was inflated.
So this page sets out exactly what follows where it is found.
Not one of them. They apply together.
- ① Supply contractcancelled
- ② Subscription eligibilityrestricted for up to 10 years
- ③ Criminal penaltyup to 3 years' imprisonment or a fine of up to ₩30M
It is not a choice among the three. The award can be cancelled while eligibility is barred and criminal proceedings run alongside.
First, cancellation of the supply contract. The provision reads 'shall cancel', so it is a duty rather than a discretion. The award and the contract are undone.
Second, the restriction on subscription eligibility. It runs up to ten years, with the actual period set by Ministry of Land, Infrastructure and Transport ordinance. Ten years is the ceiling.
Third, and heaviest, the criminal penalty. Up to three years' imprisonment or a fine of up to ₩30M, with one further provision attached.
A large gain from the breach raises the ceiling with it.
- Basicup to ₩30M
- If three times the gain exceeds ₩30Mup to three times the gain
The wider the gap between the sale price and the market price on a development, the more this provision actually bites. The larger the gain, the higher the ceiling on the fine climbs with it.
There is something that must be known alongside this. Someone who bought a fraudulently subscribed property without knowing is protected.
주택법 제65조제6항, added in 2021
- Fraudulent award winnercontract cancelled
- Purchaser who did not knowcannot be cancelled if they establish it
Without this provision every pre-sale right traded on the market would be unsettled. A fraudulently subscribed flat is not, for that reason alone, an unsafe purchase.
And there is one distinction this page most wants to draw. Deliberately inflating the figure and miscounting in ignorance are not the same thing.
The conditions for recognising a dependant are genuinely demanding. For a lineal ascendant, the applicant must be the head of the household and the ascendant must have been on the same household resident registration record for at least three years. If either the ascendant or their spouse owns a home, neither is recognised. A lineal descendant aged 30 or over must have been registered for at least one year.
Not knowing these conditions is how people come to count more than they actually have. So working through the conditions one by one before applying comes first. Knowing exactly how many points you have now comes before looking for ways to raise them.
Count without knowing them and the score comes out too high.
- Lineal ascendantapplicant is head of household + 3 years on the record
- Ascendant owns a homeeither them or their spouse, and both are excluded
- Lineal descendant aged 30 or over1 year on the record
So: subscription points are not something to raise but something to count accurately. If the score is low once counted against the conditions, looking at another route such as special supply is the better course. Trying to force the high-scoring item into shape comes back as three sanctions.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
주택법 제65조제1항 (prohibition on disturbing the supply order)
In force in force
No person shall transfer, acquire or broker a certificate or status in order to be supplied with, or to have another supplied with, housing constructed and supplied under this Act, nor be supplied with or have another supplied with housing by false or other improper means.
What this means
Improper means to secure an award are prohibited generally. Moving a resident registration without any intention of actually living there may fall within it.
주택법 제65조제2항·제5항 (cancellation and restriction on eligibility)
In force 제2항 amended 2021-03-09
The Minister of Land, Infrastructure and Transport or the project operator shall void the status of, or cancel the supply contract already concluded with, a person who transferred or acquired a certificate or status in breach of 제1항, or who was supplied with a certificate, status or housing by false or improper means. The Minister may restrict occupant eligibility for a person in breach of 제1항, for up to ten years and as prescribed by Ministry ordinance.
What this means
Cancellation is not 'may' but 'shall'. It is a duty, not a discretion. The restriction on occupant eligibility is capped at ten years, with the actual period set by Ministry ordinance.
주택법 제65조제6항 (protection of a good-faith purchaser)
In force added 2021-03-09
Notwithstanding 제2항, where a purchaser who acquired the housing or the status of selected occupant without knowing that conduct disturbing the supply order had occurred establishes, as prescribed by Presidential Decree, that they had no connection with that conduct, the supply contract already concluded shall not be cancelled.
What this means
A purchaser who did not know is protected. Not automatically, though: **the purchaser must themselves establish** that they had no connection. The provision was added in 2021, so before that this protection did not exist.
주택법 제101조 (penalties)
In force in force
A person in breach of 제65조제1항 is liable to imprisonment of up to three years or a fine of up to ₩30M. Where three times the gain obtained from the breach exceeds ₩30M, however, the person is liable to a fine of up to three times that gain.
What this means
The ceiling on the fine is not fixed at ₩30M. The wider the gap between the sale price and the market price on a development, the larger the gain and the higher the ceiling climbs with it.
주택공급에 관한 규칙 별표 1 (basis for applying the points system)
In force schedule last amended 2024-12-18
Subscription points total 84: 32 for time without a home, 35 for the number of dependants and 17 for time holding the subscription account. Dependants score 5 points each, with full marks at six or more.
What this means
The number of dependants carries the most of the three items. Which is also why it is the item that actually comes under inspection.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Housing Subscription Score
Frequently asked
Doesn't it end with the award being cancelled?
No. On top of cancellation of the supply contract, subscription eligibility is restricted for up to ten years and imprisonment of up to three years or a fine of up to ₩30M may follow. The three are not alternatives. They can apply together.
Isn't the fine capped at ₩30M?
The basic ceiling is ₩30M, but where three times the gain from the breach exceeds ₩30M, the fine may go up to three times that gain. The wider the gain against market price, the higher the ceiling climbs with it.
What if I bought a fraudulently subscribed flat without knowing?
You are protected under 주택법 제65조제6항. Not automatically, though. The purchaser must establish, as prescribed by Presidential Decree, that they had no connection with the conduct. The provision was added in March 2021.
What if I miscounted my dependants in ignorance?
The conditions are demanding and miscounting genuinely happens. It differs in character from deliberate inflation, but winning an award without in fact meeting the conditions can still cause difficulty. Work through the conditions one by one before you apply.
What are the conditions for recognising a dependant?
For a lineal ascendant, the applicant must be head of the household and the ascendant must have been on the same household resident registration record for at least three years. If either the ascendant or their spouse owns a home, neither is recognised. A lineal descendant aged 30 or over must have been registered for at least one year.
Is there nothing to be done with a low score?
Besides the points system there are the lottery allocation and special supply. Where the conditions fit, schemes such as the newborn special supply can be favourable. Looking for another route beats trying to force the high-scoring item into shape.
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.