Analysis of the Effectiveness of Administrative Sanctions on False and Exaggerated Real Estate Advertisements

The purpose of this study is to empirically analyze the effectiveness of government policies in Administrative Sanctions on False and Exaggerated Real Estate Advertisements on real estate brokerage platforms. This was done by investigating the number of licensed real estate agents who were actually penalized for advertising false listings, using a difference-in-differences (DID) analysis. Additionally, a multiple regression analysis was conducted, with independent variables including false and exaggerated advertisements and economic variables such as the industrial production index, the Chunsei price index, the status of construction starts, and housing transaction volumes. The DID analysis results indicated that the government policy had a positive(+) effect, with a decrease in false listings following the implementation of the policy. When control variables were used, the experimental group showed a negative(-) trend over time, indicating a reduction in the number of agents advertising falsely. The interaction variable showed a significant reduction in false and exaggerated advertisements within a 0.01 significance level, demonstrating that the government policy of imposing fines was highly effective. The result of the multiple regression analysis indicates that the variable showing a positive relationship with the number of penalized licensed real estate agents. This indicates that more false and exaggerated real estate advertisements occur when real estate transactions are active. Based on these findings, it is necessary for the government to continuously monitor actual real estate transaction volumes to reduce false and exaggerated real estate advertisements.