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Real estate + equity = high flammability problem
Even personal investment is an unavoidable moral criticism.
Unstable policy credibility … Promote swift government action
The ripples caused by accusations of pre-speculation in Gwangmyeong and Siheung districts by employees of the Korea Land and Housing Corporation (LH) are spreading more and more. As soon as the suspicion arose, it was unusual for Prime Minister Jeong Sye-gyun and then President Moon Jae-in to immediately order a full investigation and severe punishment. This means that it is a matter of great destructive power.
It was a suspicion of real estate, the Achilles heel of the government and the entities that implement the real estate policy were involved. If speculation is confirmed to be true, the legitimacy of property policies that focused on blocking speculation for advertising purposes and promoting the ‘2 · 4 housing supply measure’ could be undermined.
The Ministry of Land, Infrastructure and Transport and officials from the cities of Gwangmyeong and Siheung also investigated
The government announced on the 3rd that it would expand the scope of the investigation to third new cities in addition to Gwangmyeong and Siheung districts, where allegations of speculation were raised by LH employees. The third new cities in the metropolitan area are Namyangju Wangsuk, Hanam Gyosan, Incheon Gyeyang, designated in December 2018, followed by Changneung and Bucheon in Goyang in May of the following year, followed by Gwangmyeong and Siheung at the end of last month. Outside of the metropolitan area, there are two districts in Daejeo in Busan and Sanjeong in Gwangju.
The targets of the alleged speculation investigation were extended to LH employees, as well as employees of the Ministry of Land, Infrastructure and Transport and related public institutions and their families. The investigation is led by the Prime Minister’s Office and the Public Housing Promotion Team cooperates within the Ministry of Land, Infrastructure and Transport. If it is confirmed as an illegal or unfair transaction, we plan to take strict action, such as requesting an investigation and prosecuting and prosecuting.
Gwangmyeong-si and Siheung-si, Gyeonggi-do themselves conduct a full investigation into whether their officials acquired land in the planned district of the new city. Of the total area (12.71 million ㎡) of Gwangmyeong and Siheung districts, 8.11 million ㎡ belong to Gwangmyeong City and about 4.6 million ㎡ belong to Siheung City. This area has been mentioned as a promising candidate for a new city for many years.
The Ministry of Land, Infrastructure and Transport, which started the investigation the day before, confirmed that 13 LH employees bought the land before the announcement from Gwangmyeong and Siheung districts. All the lands they bought were 12 lots. The total area is approximately 27,000m2 and the transaction period is from August 2017 to June last year. Most of the land is paddy fields and fields, and one lot is land.
For those employees, the positional system was completed. The Ministry of Lands, Infrastructure and Transport is investigating whether they used inside information to dispose of the land.
Exceptional quick response, why?
When solidarity participation and a group of lawyers from the democratic society (Minbyun) exposed the allegations of speculation in the Gwangmyeong and Siheung districts of LH employees through a press conference, an emergency occurred in the government as well as in the Blue House and the Democrats ruling.
The day before, Prime Minister Chung ordered: “Quickly check for similar cases in other housing development districts,” and on that day, President Moon also through spokesman Kang Min-seok, △ A thorough investigation of the transactions of land △ Respond strictly to any violation △ I ordered that the appropriate institutional measures be taken.
The same is true for the leadership of the Democratic Party, which must be linked quickly. The representative of the Democratic Party, Lee Nak-yeon, said on the day: “If the suspicion is true, it is a serious crime that seeks to obtain private interests by mobilizing secrets acquired during the work,” and emphasized: “The government you must immediately investigate the facts and, if necessary, investigate. “
According to the results of the investigation, the Party’s quick response in a day after revealing suspicions despite concerns that could shake even the Minister of Lands, Infrastructure and Transport, Byun Chang-heum, who was appointed last year as a pitcher. relay for the supply of housing. it is because it is a highly flammable subject that arouses public sentiment.
As long as the government has issued 25 real estate policies so far, eradicating speculation and realizing the public interest will return to the boomerang. If the allegations of speculation by LH employees are confirmed to be true, and additional illegal and unfair land transactions are revealed in the third full investigation of the new city, they are seen to have explosive power that will emerge as a ‘ Lame duck trigger ‘at the end of the scheme. There is an unavoidable negative impact on the reliability of the housing supply measures that LH should lead at this time. Cho Joo-hyun, a professor in the Department of Real Estate at Konkuk University, said: “If the public-led redevelopment or supply is revealed to be unfair, it will inevitably damage the reliability of the policy, which is a problem. very serious problem. “
I came up with a North Korean reverse countermeasure
Even if the purchase of land by LH employees turns out to be a private investment without using inside information, it seems inevitable that it is unavoidable that it is an inappropriate investment as a matter of public works. The new cities are basically a way of migrating indigenous peoples and developing housing sites by public institutions like LH. This is because land expropriation is an investment that the agency employee wants to benefit from when there is coercion.
In any case, the government has urgently started preparing countermeasures on the same day that the public uprisings broke out. Employees of the Ministry of Land, Infrastructure and Public Organizations related to the development of new housing sites, in principle, decided to immediately review the measures to prohibit land transactions other than for residence purposes and inform them in advance if unavoidable . In addition, it plans to establish a system of investigation and constant response to suspicious cases and punish personnel for illegal and unfair matters.
The scope of punishment is systematically broadened. According to the current Special Public Housing Law, if the information obtained during commercial processing is used for other purposes or is leaked to others, you will be subject to a prison term of not more than 5 years or a fine of 50 million won or less. The government decided to propose effective measures to prevent recidivism by expanding the scope of the punishment. An official from the Ministry of Land, Infrastructure and Transportation said: “We will review the revisions to the related laws and regulations and, first of all, we will be able to implement them immediately through regular regulations such as the personnel regulations for each public institution.”
Kim Ji-seop reporter [email protected]
Gangjin-gu reporter [email protected]
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