In two of the world’s hottest real estate markets, authorities are grappling with the fallout from high-profile investigations into financial misconduct, raising fresh concerns about oversight and the integrity of property transactions. From the luxury towers of Seoul’s Gangnam to the lakeside retreats of Ontario’s Muskoka, a wave of scrutiny is sweeping through the real estate sector as regulators chase hidden funds, missing millions, and elusive tax evaders.
On October 1, 2025, South Korea’s National Tax Service (NTS) announced a sweeping crackdown on suspected tax dodgers tied to luxury home purchases in Seoul. The agency launched tax audits targeting 104 individuals, including young buyers and foreign nationals, who are suspected of sidestepping taxes on high-end real estate deals. The probe zeroes in on properties traded for more than 3 billion won—roughly $2.14 million—in the city’s most coveted districts, including the so-called Gangnam Four (Gangnam, Seocho, Songpa, and Gangdong) and the “MaYongSeong” area, which encompasses Mapo, Yongsan, and Seongdong.
According to reporting by Korea JoongAng Daily, the NTS reviewed over 5,000 housing transactions from late 2024 through mid-2025 to select suspicious cases. Officials are meticulously analyzing each individual’s income, assets, and occupation to identify possible cases of underreported income or illicit gifts disguised as legitimate funds. The agency is also casting a skeptical eye on foreign nationals who purchased high-value homes, especially those whose domestic income, loan history, or overseas wire transfers raise red flags.
Some of the cases under investigation are as dramatic as they are complex. One particularly eye-catching example involves a man in his 20s who recently bought a Seoul apartment worth over 2 billion won. Before the purchase, his father liquidated real estate and foreign stocks, securing tens of billions of won in cash. Authorities found that the funds were not properly accounted for, and no gift tax declaration was filed—leading them to suspect a secret transfer of wealth. The NTS plans to audit this transaction closely.
Other cases involve individuals living in expensive rental homes without clear income sources, or those suspected of receiving large jeonse deposits through disguised gifting. Some buyers are believed to have manipulated the one-home capital gains tax exemption by transferring properties on paper to relatives, while reporting only the more profitable sale for tax purposes.
"We will exhaust all available tools to track hidden funds and collect all evaded taxes without exception," vowed Park Jong-hee, head of the NTS property tax bureau, during a press briefing at the government complex in Jongno District, central Seoul, on October 1. That same day, the NTS signed a memorandum of understanding with the Ministry of Land, Infrastructure and Transport to bolster oversight of irregular real estate transactions and to share findings through regular consultative meetings. NTS Commissioner Lim Kwang-hyun said the agency aims to achieve "tangible outcomes in cracking down on tax evasion and restoring market order."
While South Korea’s authorities are chasing hidden wealth in the capital’s gleaming towers, a different kind of real estate scandal is rocking Canada. By September 30, 2025, the collapse of Sussman Mortgage Funding Inc. had left investors in Ontario scrambling to recover more than C$100 million in missing syndicated mortgage funds. The case, now under receivership, has drawn comparisons to infamous Ponzi schemes and has exposed cracks in the regulatory framework of Canada’s booming—and now faltering—housing market.
As Bloomberg reports, Sandy Sussman, a well-known Toronto mortgage broker, built his business on community ties and the promise of lucrative returns from cottage country mortgages in Barrie and Muskoka, often dubbed the "Hamptons of the North" for their luxury lakeside properties. For years, Sussman’s business flourished alongside Canada’s real estate bull run, but when interest rates spiked in 2022 and the market cooled, the underlying risks came to light.
The receiver’s investigation found that much of the money Sussman raised was never lent out as promised. Instead, payouts to existing investors were likely funded by new investments—a classic hallmark of Ponzi operations. As lawsuits began to pile up, allegations surfaced that Sussman missed repayments and failed to register some mortgages, leaving investors dangerously exposed and unprotected.
The Sussman case has become a cautionary tale for those tempted by the promise of high-yield, private mortgage investments—especially when trust and personal connections replace due diligence. Many investors were drawn in by affinity and invested without legal review or proper documentation, a vulnerability regulators and industry groups have long warned against.
Mortgage fraud has become a key focus for Canadian regulators, including the Financial Services Regulatory Authority of Ontario (FSRA), which has stepped up its scrutiny of fraudulent activity in the mortgage space. The public’s concern is palpable: an online survey by Pollara Strategic Insights for Mortgage Professionals Canada (MPC) and the MTIIAC found that 78% of Canadians believe mortgage fraud creates an unfair playing field, while 64% say it inflates housing prices.
These parallel investigations—one in Asia, one in North America—highlight a common thread: as real estate markets grow more complex and lucrative, they also attract schemes that can undermine trust and stability. Whether it’s the secret gifting of millions to buy a luxury apartment in Seoul or the collapse of a mortgage syndicate in Ontario, the risks are real and the consequences far-reaching.
For ordinary buyers and investors, these stories serve as a stark reminder to scrutinize funding sources, demand transparency, and seek professional advice before diving into high-stakes real estate deals. Regulators, meanwhile, are playing catch-up, tightening oversight, and promising tougher enforcement to restore faith in the market.
As authorities in Seoul and Toronto dig deeper, the hope is that their efforts will not only bring wrongdoers to justice but also set a new standard for transparency and accountability in the global real estate market. The coming months will reveal whether these crackdowns lead to lasting change—or if more hidden traps await in the world’s most coveted property markets.
