315 Cases of Misleading Advertisements for 'Residential' Use of Serviced Residences Detected

The Ministry of Land, Infrastructure and Transport announced today (June 19) that it has detected 315 online advertisements that misled consumers into believing that serviced residences (life-accommodation facilities) could be used for residential purposes, even though they had not been legally converted for such use.

The Ministry inspected 1,180 advertisements posted on online real estate platforms, blogs, and internet cafes regarding 912 serviced residences that had not been converted into residential properties (officetels) as of the end of December last year, out of a total of 3,595 such facilities nationwide.

The inspection revealed that 315 cases (26.7%) were suspected of being illegal.

By region, Gyeonggi Province had the highest number of cases (155), followed by Busan (47) and Incheon (25).

Among the detected advertisements, 162 cases were found to potentially mislead consumers into believing the facilities were for residential use by incorrectly labeling them as "officetels," "multi-unit housing," "residential use," or "move-in possible," contrary to their actual status.

Another 153 cases were flagged for failing to include mandatory information, such as using vague terms like "low-rise," "mid-rise," or "high-rise" instead of the required specific floor numbers.

The Ministry has requested that the online platforms where these advertisements were posted take corrective measures, such as modifying or deleting the posts, and has notified the relevant local governments to ensure follow-up actions, including administrative penalties, are taken.

Kim Ki-dae, Director of the Real Estate Consumer Protection Planning Division at the Ministry, stated, "Serviced residences can only be used for residential purposes if they have legally completed the change-of-use procedure, so it is essential to verify the building's designated use and the details of the advertisement before signing a contract." He added, "We will continue to monitor for false and exaggerated advertisements to ensure that the public can make transactions with peace of mind based on accurate information."
※ Please note: This article was translated by AI and may contain errors.