Authorities in Busan raided offices linked to public real estate agents operating a cartel that bars transactions with non-members, targeting competitors in the maritime district.
Details of the Raid
Police and prosecutors searched premises tied to approximately 50 non-union agents, including 35 key executives from a prominent group. The operation, conducted on March 25, uncovered efforts to monopolize deals in union-controlled buildings since 2021.
Cartel Tactics in Union Buildings
These agents directly block non-union rivals from handling transactions in apartment complexes and similar properties managed by unions. Each building assigns just two union agents to process all sales, ensuring residents access a wider product range and superior service.
Such buildings maintain dedicated companies housing 110 employees. Agents pay a deposit of 200 million won and monthly dues of 20 million won to join.
Strict Internal Rules
Membership requires adherence to content prohibiting deals with non-members. Unions expose non-compliant operations, expel violators, and handle complaints about rule breaches. They also guide residents toward using union agents’ products exclusively.
Investigators confirm the group deliberately restricted transactions to their own networks, stating, “They used union building deals solely within their territory… This amounts to monopolizing private building sales.”
Past Violations and Evidence
A 2020 incident highlighted similar non-union targeting as a motive for breaches. The probe seized transaction ledgers, advisory documents, stakeholder statements, and related records, verifying widespread damages.
Additionally, a prominent politician highlighted special damages from building-related crimes in Busan via social media on March 24.
