Gyeonggi-do Yongin City has announced strong measures to address the potential investor harm in private rental housing projects. They plan to report any false or exaggerated advertising to the Fair Trade Commission. Currently, there are eight private rental housing sites actively promoted in the area, including Yongin Namgok Hesen City Phases 1 and 2, Samga Überheim, Yongin City Hall Station Urban City Phases 1 and 2, Guseong Station Platform City 45, Guseong Station Platform Zion City 47, and Shingal-dong Private Rental Housing. This is an increase of four sites since the last inspection in April.
The city reports that none of these sites have received housing construction project plan approval, which is a necessary legal procedure for pursuing housing projects above a certain scale, including the number of units and additional facilities.
Some businesses are allegedly recruiting members under the guise of tenants or buyers to raise necessary funds, misleadingly advertising investment opportunities. This has led to an increase in citizens inquiring about membership registration or withdrawal. Some days see as many as 30 calls or visits for consultation.
An investor, referred to as Person A, joined a promotional membership by a private rental housing project advertised as “completed in 2007” and “priced lower than market value,” but faced almost no return on their investment when attempting to withdraw due to deductions such as transaction fees and penalties. Another investor, Person B, contracted after seeing material about “more than 80% land secured” and detailed plans, only to find out through the city that the project approval had not been obtained, resulting in a decision to forfeit their subscription fee.
City officials advise careful fact-checking before joining such memberships, particularly for retirees and elderly individuals investing their retirement funds. As the contracts for membership involve no legal regulations, and there are no refund provisions, the financial burden falls on the individuals.
To prevent consumer damage, the city plans to post updates on private rental housing developments on its website and raise awareness through banners and notices. The project status is available under the Housing/Construction section in the urban information category. The city intends to take robust action to protect citizens’ property, including reporting deceptive practices to the Fair Trade Commission.