‘LH Employee Pre-Speculation Suspicion’ … Third New City Plan Hits

Check-in 2021.03.05 11:00

With the suspicion that Korea Land and Housing Corporation (LH) employees had speculated on the planned areas of the new cities of Gwangmyeong and Siheung in advance, there are concerns that the government’s ambitious third new city project may also start fires. Mistrust in public opinion and follow-up measures by the government can cause delays or difficulties in the project as a whole. An official from the Ministry of Lands, Infrastructure and Transport said: “We will continue with the plan for the third new city regardless of the controversy,” but observations were raised that the project could be delayed if the government’s large-scale investigation and the possibility of post-investigation judicial proceedings.

After the suspicion was raised on the 2nd, President Moon Jae-in said on the 3rd: “For Gwangmyeong and Siheung, as well as the entire Third New City, land for new apartments related to housing development such as the Ministry of Housing. Land, Infrastructure and Transportation, LH and related public institutions, and their families. He instructed to conduct a thorough transaction investigation. ” It is interpreted as a matter of great impact for the President to take care of himself the day after the suspicion is raised.

Following the leadership of President Moon, the government launched a joint government investigation team comprised of the Ministry of Land, Infrastructure and Tourism, the local government, etc., with the Prime Minister’s office as the main hub. In addition to the six third new cities, a comprehensive investigation of six basic local governments, including Gyeonggi-do and Incheon, is planned. In the case of the Ministry of Land, Infrastructure and Transport, Gyeonggi-do, LH and Gyeonggi Housing and Urban Corporation (GH), not only the employees in charge of the housing site project will be included, but also the families of public officials . in the scope of the survey.

With such an increase in work, the real estate industry predicts that the schedule for the third new city, which will begin to occupy in 2025 as early as 2025, could be delayed from the original plan. The last step in the new city development project is “land compensation” before construction begins. As this suspicion is directly related to land compensation, the overall start of the project will inevitably be delayed until it is resolved.

The representative of the city and the economy, Song Seung-hyun, said: “It will be difficult to carry out more business without the results of the investigation that dispel the suspicion.” This can happen, “he said.

First, even if government-led research is carried out, it will be difficult to produce results in the near future. The possibility of borrowing name speculation should also be investigated, because in this case, it takes time to trace the flow of funds. An official with a real estate agent in Eunpyeong-gu, Seoul, said: “LH employees are said to have bought and sold real estate such as land on a small scale.” It will take some time, “he said.

In addition to the investigation by the Prime Minister’s Office, an audit may be conducted by the Board of Audit and Inspection. The Bar Association for the Democratic Society (Minbyun), which raised the suspicion, has requested a public interest audit from the Board of Auditors on the suspicion. Some of the industry is speculating that the reason why key Blue House officials said: “I will have to consider more in the future whether to go through additional investigations with the auditor.”

If the investigation and audit reveal that the allegations of presumption are true, the time required for prosecution can be added to cover whether it is illegal or not.

It is also a huge burden to debate as a political issue. The popular power of the first opposition party held a conference the same day to discuss the response to the allegations of speculation by LH. Ho-young Joo said: “It is very wrong that the Minister of Land, Infrastructure and Transport, who served as the president of LH, investigates this matter.” If you do, you will also request a national investigation. On the 3rd, the ‘Petition for National Audit Request’, which was posted on the Casa Azul petition bulletin board, attracted nearly 10,000 petition agreements in just one day. If the attention of politicians is caught, LH will inevitably be cautious in promoting her business.

The government’s goal of achieving stability in the housing market through a “rapid” expansion of supply is likely to stagnate as suspicions of LH speculation stall and the third new city project is delayed. . Dae-jung Kwon, a professor in the Department of Real Estate at Myongji University, said: “After the Moon Jae-in administration, the supply and demand imbalance occurs during the gap between the supply gap and the tenure of the property. third new city due to the decrease in the number of licenses.

The decline in trust in political authorities is also painful. CEO Song Seung-Hyun said, “Prior to the inauguration, Minister Byun Chang-heum had only a year and a half in office, so there was a question that the market could actually start supplying measures.” Doubts about the government’s willingness to supply will increase, ”he said. Then, Song said, “public opinion may be wary of public intervention, such as public leasing and public reconstruction, and the entire government project may be disrupted.”