LH launches third-party consultation registry to block illegal brokering in housing purchases

The Korea Land and Housing Corporation announced Monday it will launch a "third-party consultation registry" system to strengthen fairness and transparency in its rental housing acquisition program.

The reform goes a step beyond the existing corruption-reporting system by blocking solicitation and lobbying by brokers and other third parties from the earliest stage of the process. It aims to prevent illegal activity during property sale applications and improve the overall integrity of the acquisition program.

Under the new system, when a third party — such as an outside organization or a former employee — with no direct stake in a specific property requests information or consultation, the responsible staff member must formally log the inquiry in the system. Direct stakeholders are defined as the applicant selling the property, architects and contractors.

To keep illegal brokers out, LH will also operate a stepped warning and sanctions system targeting property sellers. If a third-party inquiry occurs for the first time, LH will immediately notify the seller as a first-level warning, sending a "Caution" text message alerting them that repeated incidents could result in an audit request or suspension of the purchase process.

If third-party inquiries about the same property occur two or more times, LH will treat the case as a suspected improper solicitation, refer it to its audit office and suspend the purchase process for that property until the audit is complete.

To protect sellers acting in good faith and to maximize the system's effectiveness, LH plans to include details of the new rules in future acquisition program announcements, minimizing confusion caused by any suspension of purchase proceedings.

LH has consistently taken a firm stance against improper solicitation and other misconduct — barring implicated properties from purchase review, canceling contracts and imposing 10-year purchase bans. The corporation has also worked to improve operational transparency by allowing sellers to track the progress of their applications online at each stage.

In addition, LH overhauled its purchase review process in March, replacing a pass-or-reject voting format with a quantitative scoring system that evaluates properties across detailed criteria including location, price and design, boosting the objectivity and transparency of the review.

On top of those measures, LH said the introduction of the third-party consultation registry will allow it to eliminate the root causes of misconduct from the very start of the acquisition process.

"Through this system, we will thoroughly block illegal brokers and outside solicitation that could arise during the rental housing acquisition process, and create an environment where sellers can participate in purchase procedures fairly and legitimately, free from illegal inducements or harm," said Yoo Byung-yong, head of LH's residential welfare division. "We will continue to strengthen transparent administration to advance a public housing acquisition program that the public can trust."