Senior LH executives, including CEO Jang Choong-mo (fourth from left), apologize to the public for allegations of pre-speculation at the Seoul Regional Headquarters of Korea Land and Housing Corporation in Gangnam-gu, Seoul on the 4th. LH offer
Amid rising public condemnation by Korean Land and Housing Corporation (LH) employees for allegations of speculation in the Gwangmyeong Siheung district, the situation of their land purchase is being revealed one after another. They pretended to grow crops to avoid farmland law regulations and increase compensation, and are suspected of splitting the lot in accordance with the land compensation regulations. It is a common technique for speculators who seek profits in new urban development areas.
Did you learn it through compensation for many years?
As a result of analyzing a certified copy of the land register of Siheung-si, Gyeonggi-do held by LH employees on the 4th, the field of 5,025m2 in Guarim-dong was bought for 2.25 billion won on February 27 last year. The land was then divided into four parcels of 1,407㎡·1,288㎡·1,163㎡·1,167㎡. In case of land acceptance, 1,000㎡ is the standard for compensation for land in nearby areas instead of cash compensation. The current owners of the split land are seven, of which four are LH employees working in the metropolitan area.
Earlier, on June 3, 2019, four LH employees purchased a paddy field with an area of 3,996m2 in Guarim-dong for 1.510 billion won. Two of them divided the land by 1,332m2 and the other 2 by 666m2. Three out of four are known as colleagues who worked in the same department of the nearby LH Gwacheon Uiwang Project.
A seedling planted in a field in Gwarim-dong, Siheung-si, Gyeonggi-do, which is suspected of speculation. Reporter Kim Ji-seop
Thousands of seedlings about the height of an adult’s knee are now densely planted on the farmland purchased by LH employees. According to the Farmland Act, farmland can only be owned by those who directly farm it, and a separate compensation fee is set for trees when land is imprisoned. This is why there are suspicions that the seedlings were planted to avoid regulations and increase compensation. Mr. A, who runs an accredited brokerage office near Guarim-dong, said, “Because these people couldn’t farm on the farmland, we planted trees.”
They also received billions of billions of loans as if they were confident of the profitability of their investments. According to the Solidarity of Participation and Minbyun, LH employees poured 10 billion won into land purchase costs, and 5.8 billion won is a loan received from the Agricultural Cooperatives in Siheung. Some land is so-called blind land with no roads connected, but the real estate industry judges that it is difficult to invest with enormous loans if there is no confidence in the development.
“The usable land in Siheung Gwarim-dong and Mujinae-dong is expensive enough to sell for 9 million to 12 million won per pyeong.” Explained. He added, “I think that the interest on a loan per month will reach tens of millions of won, but I thought that I would have bought it with the idea of having to endure only one year after knowing the information that it will be developed.”
LH employees suspected speculation in Siheung District, Gwangmyeong
The problem is seen as speculation in the eyes of the public
The government joint investigation team, which was launched under the strict order of President Moon Jae-in, has begun an extensive investigation from this day, and the police have also initiated an investigation, but it is still difficult to affirm whether the punishment will be carried out. Applicable laws include violations of the Public Officials Ethics Act (Obligation to Prevent Conflicts of Interest), the Special Public Housing Act, and the Anti-Corruption Act prohibiting the use of confidentiality in business, because it is difficult to prove the most important work relevance.
The Ministry of Land, Infrastructure and Transport’s own investigation also confirmed that the employees involved in the suspicion were not workers in the new city-related departments. Although it is a clear speculation in the eyes of the public, and even if the method itself is suspicious of speculation, it will not be easy to punish if it is found that it is a land purchase that has been judged by itself based on the market trend. For this reason, voices are rising that the politicians should also fill in the sloppy laws. LH, who was at the center of the criticism, also said in an apology to the public on the day that “we will establish the discipline for public service by renovating the organization on a massive scale and powerfully.”
In the midst of this, an employee at LH is raising questions about the fact that he has given a paid lecture on YouTube using his work information. Mr. Oh, in his 40s, who works for the Uijeongbu Project Division at the Seoul Regional Headquarters, was caught giving a land auction and auction lecture at an online real estate investment lecture site without his company’s permission, and is currently undergoing an internal audit. Mr. Oh promoted himself as’Korea’s No. 1 Land Lecturer’ and’Land Auction One Strike (No. 1 Sales) Lecturer’. “We will complete the investigation within this week and confirm the final facts,” LH said.
Kim Ji-seop reporter [email protected]
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