“Planning up a normal rice field” 1.3 billion profit LH employees speculation on the scene

“The person who knows the inside information, such as the compensation method, bought the land for speculation purposes.”

Official brokerages in Gwarim-dong, Siheung-si, Gyeonggi-do, who visited on the 3rd said that Korea Land and Housing Corporation (LH) employees intensively purchased the area designated as the third new city from 2018 to last year.

On the 2nd, an attorney’s meeting for the Solidarity of Participation and Democratic Society (Minbyun) held a press conference and said, “Several LH employees divided their stakes and confirmed the circumstances of purchasing land before the 3rd new city designation.” The Ministry of Land, Infrastructure and Transport said on the 3rd through its own investigation, “It was confirmed that 13 LH employees have purchased 12 parcels in the designated area as a new city.”

Their purchase of land in the new city began in 2018. Four people, including Mo Park, purchased a field (area 5905m2) next to Gyeonggi Automobile Science High School in Mujinae-dong, Siheung City. They purchased the land for 1.87 million won per pyeong (3.3㎡) at the time.

Mr. Lee, who runs a real estate agent in Mujinae-dong, Siheung-si, Gyeonggi-do, said, “The land owner offered up the land in the range of 1.3-1.4 million won per pyeong, the market price at that time in 2018.” The market price is formed around 10,000 won, which is about 80% of the investment, and the valuation gains were made, and Park Mo, who bought the land for 1.94 billion won, can expect a market price margin of about 1.3 billion won based on the current market price.

Local realtors said that the number of people coming to see the land has increased since the beginning of 2019. This is the time when compensation for the landlords of the’Gwangmyeong·Siheung Techno Valley’ developing areas in Gahak-dong, Gwangmyeong-si and Nongok-dong and Mujinae-dong, Siheung-si were in progress.

Song Mo, a real estate agent, explained, “This is a time when the price of the Guarim-dong area also increased by 300,000 to 400,000 won per pyeong as the news that Techno Valley land compensation was set up to 180-200% of the publicly announced land price.” It was also at this time that LH employees’ land purchase began in earnest. Song said, “If you bought it in 2019, you bought the land at a relatively low price,” he said. “Even if you receive cash compensation, you can expect enough investment profits.”

Some argue that “the Gwangmyeong and Siheung areas were a matter of time, but development was a definite place, so the fact that LH employees bought the land cannot be seen as speculation using internal information.” Mr. Min Mo, an indigenous people of the region, was also foreseen that it would be developed within 10 years from the time the area was grouped as a special management area in 2015.”

However, compared to the investment amount, the analysis says that “there must have been information that is difficult for the general public to access,” in that the loan amount is large and the land is mainly purchased for which rental income is not expected. Participation Solidarity and Minbyun also said, “About 5.8 billion won of their land purchase funds are estimated to be loans to financial institutions.” Explained.

Most of the land that is known to have been purchased by LH employees is classified as’farmland’. There were fences around the two plots of rice paddies in Gwarim-dong, which were purchased by Mr. Kim and others in 2019, and the entrance door was firmly closed. Willow saplings were densely planted in the rice fields. “I see the land every day, but I didn’t know that the owner changed,” said Umo, who has been running a waste disposal company nearby for 6 years. I’ve never seen it before,” he said.

Kim Mo, who runs a botanical garden in Noonsa-dong, Gwangmyeong City, said, “We usually plant jujube trees on farmland where cultivation has been stopped,” he said. Kim added, “There is a compensation manager among the LH employees who bought the land, but he will be a person who knows in detail what trees and how to plant them to receive good compensation.” The land where the seedlings are planted is assessed separately for the seedlings and added to the land compensation price.

Gwarim-dong bank manager Park Mo said, “People who bought the land in Mujinae-dong came to me one day to ask me to stamp the cultivation confirmation form to receive the Ministry of Agriculture and Support. “I saw later that I planted a tree in the land,” he said.

Participation Solidarity and Minbyun said, “If you look at the LH’s internal compensation regulations, those who have a stake of 1000㎡ meet the criteria for compensation for land,” and “Some parcels have’split their stakes’ as soon as they die. There are circumstances in which it seems that they knew the way and acted.”

When checking the actual land register, it was found that in the case of the 4 lots in Guarim-dong, which 7 people including Jang Mo, purchased in February last year, after purchasing the original 3 lots, 7 co-owners “split the stake”. There were also planted cypress saplings here.

Residents here had a deep distrust of the designation of a new city. Together with Gyeonggi-do, the development of a rehabilitation method to return land was in progress. The vicinity of Gahak-dong and Hakon-dong in Gwangmyeong-si are already doing business. It compensates with market prices and is also active in restitution. Residents are dissatisfied with the development of a new city in a forced accommodation system. There is also a lot of anxiety about compensation. LH employees’ allegations of speculation on land are fueled.

Park Mo, who has been running a mold factory here for 15 years, said, “It is unacceptable that people in public institutions have used internal data to speculate.” An indigenous people in Gwangmyeong City said, “Gwangmyeong City itself can consult with the indigenous peoples to develop them in stages, but I don’t know why the government is pushing so hard.”

Siheung = Reporter Kim Won [email protected]