On the 3rd, President Moon Jae-in ordered a thorough investigation into the allegations that Korea Land and Housing Corporation (LH) employees were speculating in the Gwangmyeong and Siheung districts. Blue House spokesman Kang Min-seok said at a briefing that day, “President Moon instructed the government to three things about the alleged speculation in the new city.”
President Moon Jae-in is receiving a report from Minister of Land, Infrastructure and Transport Byun Chang-heum at the 2021 business report held by the Ministry of Land, Infrastructure and Transport in the form of a video conference held at the Blue House on the afternoon of February 16. yunhap news
First, President Moon instructed to conduct a thorough land transaction survey on employees and families of new housing development-related departments of the Ministry of Land, Infrastructure, and LH for the entire 3rd new town as well as Gwangmyeong and Siheung.
The subject of the investigation was identified as the Prime Minister’s Office. President Moon said, “The Prime Minister’s office will conduct the thorough investigation, but jointly with the Ministry of Land, Infrastructure and Transport should invest enough manpower to investigate intensively so that there is no suspicion left,” said President Moon. President Moon added, “Please quickly prepare institutional measures to prevent allegations of speculation related to the development of new housing sites.”
The allegations of speculation by LH employees were raised the previous day at a press conference of a lawyers’ meeting for a democratic society (Minbyun) and a participatory solidarity.
According to them, 10 people, including LH employees, spouses, and acquaintances, purchased about 23,028 square meters (7,000 pyeong) of land in the Gwangmyeong and Siheung districts before they were designated as planned areas for the third new city. The Gwangmyeong and Siheung districts are expected to supply 70,000 houses with the largest scale (1271 million m2, 3.84 million pyeong) among the third new cities announced by the government on the 24th of last month.
LH employees were found to have financed more than 5.8 billion won out of 10 billion won in land purchases with loans to financial institutions such as banks. It is very likely that they knew the development plan in advance and paid a large amount of loans. Some lands have recently undergone intensive tree planting work. This is a typical technique for increasing the land compensation price.
A view of the farmland located in Gwarim-dong, Siheung-si, Gyeonggi-do, bought by LH employees. Recently, tree planting work has been carried out. This is known as a typical technique to increase the land compensation price. News 1
President Moon’s order came out a day after suspicion arose. It means that LH employees, the main body of housing supply, have systematically participated in the real estate speculation called the Moon Jae-in government’s’Achilles heel’, which means that they are seriously looking at the issue.
In particular, the time when LH employees purchased the land coincided with the period when Minister of Land, Infrastructure and Transport Byun Chang-heum served as LH president. In addition, given that LH is responsible for the 2·4 real estate measures announced by Minister Byeon immediately after taking office, it is also evaluated that Byun’s leadership as well as the authenticity of real estate measures have already been hurt.
In this regard, a key official at the Blue House said, “I know that Minister Byeon’s responsibility theory has been raised, but the responsibility theory is the responsibility for the management of (employees). He added, “Through this investigation, (Minister Byun) will secure leadership and trust,” he added. “That’s why President Moon gave an order emphasizing a strict investigation.”
Minister of Land, Infrastructure and Transport Byun Chang-heum is attending the ’31st Emergency Economy Central Countermeasure Headquarters Meeting’ held at the Seoul Government Complex in Jongno-gu, Seoul on the 3rd. Amid the spreading suspicion of speculation by some employees of the Korea Land and Housing Corporation (LH) of the 3rd new city (Gwangmyeong and Siheung districts), an arrow of responsibility is also on the subject of Byun. News 1
However, President Moon identified the subject of the investigation as the Prime Minister’s Office. President Moon directly overturned the opinion of Minister Byeon, who said that the Ministry of Land, Infrastructure and Transport would conduct a thorough investigation the day before.
Over this, disbelief against Minister Byeon was raised in the passport as well. In a call with the JoongAng Ilbo, one key person in the passport said, “It is often said that the Ministry of Land, Infrastructure, and Transport will face criticism that it is’the case of leaving fish to cats.'” It seems to be reflected.”
A key member of the Blue House said, “There is a public service management office in the prime minister’s office,” and “a measure to increase the confidence of the investigation on allegations of speculation by ensuring objectivity and strictness” regarding the background of the prime minister’s office being the subject of the investigation. An official in the Prime Minister’s Office also said, “The official service manager is the original department in charge of related affairs,” and said, “In the future, we will confirm the possibility of borrowing transactions through the National Tax Service as well as the entire land transaction history in the new city.”
On the other hand, some said, “Isn’t it a trick to avoid the auditor’s audit that will be led by Choi Jae-hyung, who has shown a critical position to the government?”
President Moon Jae-in salutes the national flag at the Anti-Corruption Policy Council held at the Blue House on the afternoon of November 8, 2019. Behind President Moon is Prosecutor General Yoon Seok-yeol. On the right is Choi Jae-hyung, Director of Audit and Inspection. yunhap news
The civic groups that actually raised the suspicion have already requested a public interest audit on the suspicion the day before. It is also said that the request has been received normally by the auditor. The Board of Auditors usually informs the claimant of whether or not to initiate an audit within one month from the date of the request for a public interest audit request.
Key officials at the Blue House said, “If you jointly (investigate) with the auditor, the timing of the launch may be delayed if you jointly (investigate) with the auditor. I said. In the meantime, he expressed a negative position, saying, “I will have to consider more in the future whether to go to the method of further investigation with the auditor.”
The official also said, “The subject of the investigation was’the Ministry of Land, Infrastructure, LH, employees and families of related public institutions, etc.’ to the question of’the possibility that the subject of the investigation will be expanded to employees of the Blue House’. I told you,” he replied. This means that it is unlikely that the subject of investigation will be expanded to the entire passport. However, he added that “the scope may be widened while conducting an investigation.”
Reporters Taehwa Kang and Sungmin Yoon [email protected]
