Whether criminal punishment provided for in subparagraph 1 of Article 48 of the Business Affairs of the former Licensed Real Estate Agent and Report of Real Estate Transactions Act that punish a person who conducts the brokerage business without registering the establishment of a brokerage office is subject to the criminal punishment provided for in subparagraph 1 of Article 48 of the same Act where a person who is unable to register the establishment of his/her brokerage office at the beginning because he/she is not a licensed real estate agent (affirmative)

Article 9 of the Business Affairs of Licensed Real Estate Agents and Report of Real Estate Transactions Act (amended by the Licensed Real Estate Agents Act, Act No. 12374, Jan. 28, 2014; hereinafter “former Licensed Real Estate Agents Act”) and Article 13 of the Enforcement Decree of the former Licensed Real Estate Agents Act (amended by the Enforcement Decree of the Licensed Real Estate Agents Act, Jul. 28, 2014; hereinafter “former Licensed Real Estate Agents Act”) impose on a person who intends to engage in the brokerage business an obligation to register the establishment of a brokerage office with the registration authority, the licensed real estate agent or representative is a licensed real estate agent, and at least 1/3 of officers or employees (referring to unlimited liability companies of unlimited partnerships or limited partnerships) excluding the representative excluding a real estate agent , who has registered the establishment of a brokerage office under Article 9, shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 20 million won.

In order to enhance the expertise of the business of licensed real estate agents and to foster the real estate brokerage business in a sound manner, only a corporation which meets certain requirements under the representative of licensed real estate agents or licensed real estate agents may conduct real estate brokerage business after registering the establishment of its brokerage office

Therefore, even if a real estate agent runs the real estate brokerage business without the registration of establishment, as well as the real estate agent conducts the real estate brokerage business without the registration of establishment, a person who is not entitled to the registration of establishment of a brokerage office at the beginning is subject to criminal punishment under Article 48 subparagraph 1 of the former Licensed Real Estate Agent Act.

Articles 9 (see current Licensed Real Estate Agents Act) and 48 subparag. 1 (see current Article 48 subparag. 1 of the Licensed Real Estate Agents Act) of the former Business Affairs of Licensed Real Estate Agents and Report of Real Estate Transactions Act (Amended by Act No. 12374, Jan. 28, 2014); Article 13 (see current Enforcement Decree of the Licensed Real Estate Agents Act) of the former Enforcement Decree of the Licensed Real Estate Agents Act (Amended by Presidential Decree No. 25522, Jul. 28, 2014); Article 13 (see current Enforcement Decree of the Licensed Real Estate Agents Act)

Defendant

Defendant

Suwon District Court Decision 2017No2032 decided October 23, 2017

The appeal is dismissed.

The grounds of appeal are examined.

1. Article 9 of the former Business Affairs of Licensed Real Estate Agents and Report of Real Estate Transactions Act (amended by Licensed Real Estate Agents Act, Act No. 12374, Jan. 28, 2014; hereinafter “former Licensed Real Estate Agents Act”) and Article 13 of the former Enforcement Decree of the Business Affairs of Licensed Real Estate Agents and Report of Real Estate Transactions Act (amended by the Enforcement Decree of the Licensed Real Estate Agents Act, Jul. 28, 2014; hereinafter “former Licensed Real Estate Agents Act”) impose an obligation to establish a brokerage office upon a person who intends to run the brokerage business, and the licensed real estate agent or representative is a licensed real estate agent, and at least 1/3 of executive officers or employees (referring to unlimited liability companies of unlimited partnerships or limited partnerships) excluding the representative , who are licensed real estate agents are permitted to establish a brokerage office. Article 48 subparag. 1 of the former Licensed Real Estate Agents Act provides that a person who conducts brokerage business without registering the establishment of a brokerage office under Article 9 shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 20 million won.

In order to enhance the expertise of the business of licensed real estate agents and to foster the real estate brokerage business in a sound manner, only a corporation which meets certain requirements under the representative of licensed real estate agents or licensed real estate agents may conduct real estate brokerage business after registering the establishment of its brokerage office

Therefore, even if a real estate agent runs the real estate brokerage business without the registration of establishment, as well as the real estate agent conducts the real estate brokerage business without the registration of establishment, a person who is not entitled to the registration of establishment of a brokerage office at the beginning is subject to criminal punishment under Article 48 subparagraph 1 of the former Licensed Real Estate Agent Act.

2. On July 3, 2014, the lower court affirmed the first instance judgment that held that the Defendant, who was not a licensed real estate agent, violated Article 48 Subparag. 1 and Article 9 of the former Licensed Real Estate Agent Act without registering the establishment of a brokerage office, assisted Nonindicted 1 to sell the land owned by Seocheon-si Co. 2, a representative director, to Nonindicted 3, and received KRW 15,500,000 from Nonindicted 1 as a brokerage commission, and the Defendant violated Article 48 Subparag. 1 and 9 of the former Licensed Real Estate Agent Act.

Examining the reasoning of the lower judgment in light of the aforementioned legal doctrine and evidence duly admitted, the lower court did not err in its judgment by misapprehending the legal doctrine on the subject of punishment under Article 48 subparag. 1 of the former Licensed Real Estate Agents Act by exceeding the bounds of the principle of free evaluation of evidence against logical and empirical rules, contrary to what

3. The Defendant’s appeal is without merit and thus dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Chang-suk (Presiding Justice)