"Lotto" Subscriptions Overheat with Perfect Scores, Government Launches Full Investigation

As tens of thousands of people flock to so-called 'lotto subscription' housing projects in prime areas of Seoul and the greater metropolitan region, and perfect subscription scores (84 points) continuously emerge, controversies over market overheating are intensifying. In response, the government has pulled out the card of a full-scale investigation into suspected fraudulent subscriptions.

Lotto Subscription Frenzy Amidst Spreading 'Housing Price Bottom' Theory

Recently, as apartment transaction volumes increase and asking prices rise simultaneously, centered around the metropolitan area, the perception that housing prices have hit the bottom is rapidly spreading. Along with this, a massive amount of funds is concentrating on popular pre-sale markets where hundreds of millions of won in market profit is virtually guaranteed, sparking an unprecedented subscription frenzy.

• Surge in Perfect Scores: The winning point cutoff has skyrocketed, and 84-point perfect accounts, which require 15 years of non-homeownership and 6 or more dependents, are successively appearing, especially in popular complexes.
• Deepening Polarization: Extreme concentration is occurring where tens of thousands flock only to complexes subject to the price ceiling system that are cheaper than the market price, while unpopular areas remain undersubscribed.

Government Takes Aim at Fraudulent Subscriptions... Will it Stabilize the Market?

As the signs of subscription overheating become clear, relevant ministries, including the Ministry of Land, Infrastructure and Transport, have launched a full-scale investigation targeting winners of major popular complexes to determine whether there have been illegal activities such as false registration of residents or illegal trading of subscription accounts.

Market experts believe this investigation will be effective in suppressing short-term speculative demand and sending a warning message to the market. However, they analyze that unless the fundamental concern about the lack of high-quality housing supply is resolved, it will be difficult to lead to long-term market stabilization. In addition, the relay hikes in mortgage loan interest rates by major commercial banks, due to concerns over a surge in household debt, are pointed out as a key variable in how they will affect buying sentiment in the real estate market going forward.

FAQ: Key Questions on the Subscription Market

Q: What conditions are required to get a perfect subscription score (84 points)?

A: You must perfectly satisfy all three conditions: a non-homeownership period of 15 years or more (32 points), 6 or more dependents (35 points), and a subscription account enrollment period of 15 years or more (17 points).

Q: What are the penalties if caught for fraudulent subscription?

A: If caught violating the Housing Act, such as through false resident registration, you can be subject to up to 3 years in prison or a fine of up to 30 million won. Furthermore, any housing supply contract already signed will be fully canceled, and eligibility for new subscriptions will be restricted for up to 10 years.