The Prime Minister’s Office directly investigated… Expanded to the entire 3rd new city
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The Prime Minister’s Office directly investigated the suspicion that some employees of the Korea Land and Housing Corporation (LH) started speculating on the land before the Siheung Gwangmyeong District was designated as the third new city. The survey area expanded not only to Siheung, Gwangmyeong, but also to the entire 3rd new town. The target of the survey was not limited to LH, but expanded to all public officials, employees of public corporations, and families involved in the creation of the new town. It is judged that it is necessary to thoroughly resolve the suspicion through a thorough investigation to maintain the driving force of the new city policy.
President Moon Jae-in ordered the Prime Minister’s Office to investigate allegations of land speculation by public officials on the 3rd new town on the 3rd. Not only Siheung Gwangmyeong, but all six 3rd new towns launched by the current government including Gyeyang in Incheon, Wangsuk in Namyangju, Captain Bucheon, Changneung in Goyang, and Gyosan Hanam are subject to the survey. In addition to LH executives and staff, all officials from the Ministry of Land, Infrastructure and Transport and executives and employees of related organizations such as Gyeonggi Housing and Urban Corporation will be investigated. The person’s family is also investigated to see if they have invested in the new city candidates.
Until now, the Ministry of Land, Infrastructure and Transport has conducted a thorough investigation of Siheung District in Gwangmyeong through LH. However, as the Office of Public Service Ethics Office of the Prime Minister’s Office oversees the investigation, the Ministry of Land, Infrastructure and Transport became a joint subject of the investigation and the subject of the investigation. The investigation will focus on whether public officials involved in the creation of the new city purchased the land before official designation of the new city.
The government announced the 3rd new city in sequence. On December 19, 2018, three locations were unveiled: Wangsuk in Namyangju (11.34 million ㎡), Gyosan in Hanam (6.49 million ㎡), and Gyeyang in Incheon (3.35 million ㎡). The following year, on May 7, 2019, two districts were announced, including Changneung in Goyang (8.13 million ㎡) and Daejang in Bucheon (343 million ㎡).
Since the government’s plan to create a new city for the 3rd term was announced, there are aspects that these regions were mentioned earlier as influential candidates before the official announcement. For this reason, even if a public official who bought the land before designating a new city, a battle may arise over whether he acquired insider information and invested, or whether he bought it as a “chuck” of investment regardless. However, the fact that public officials and executives and employees of public corporations who have been directly or indirectly involved in the creation of a new city or who are in charge of investing in the land is a situation where public resentment is pouring out.
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Construction of new housing sites, such as new cities, basically involves coercion. It is a way of letting indigenous peoples migrate and developing the land. When a new residential area such as a new city is created, the natives have to disband their lives and move to a new environment. In the case of Seohyeon District, Seongnam, a new residential area designated by the government to create a honeymoon town, residents filed an administrative lawsuit for cancellation of the designation and won the first trial. Placards against the development project can be easily found in the planned areas of the 3rd new city.
Despite these circumstances, it is inadequate for executives and employees of related organizations such as LH, who must keep strict security to prevent speculators, to invest in land with large loans. This is because when the natives were driven out for the purpose of developing a new city, they were filled with their own succession. The government’s new city policy is aimed at stabilizing housing prices in the metropolitan area, and such a controversy is fatal to the government’s policy credibility.
As the total survey is expanded to other new cities, attention is drawn to what results will be produced at other new cities. Some people in the housing industry are saying that it is not uncommon for employees of related organizations such as LH, who are about to retire, to invest in land. It is pointed out that it is rather natural to think that there would have been land speculation by related business workers not only in Siheung, Gwangmyeong, but also in other new towns. In order for the government to restore public confidence, it is very necessary to show the appearance of severing the affected area through a thorough investigation. This is the reason why they took the burden of having additional people involved and went into a thorough investigation of the entire 3rd new town.
Some say that it is necessary to investigate not only the 3rd new city but also all new housing sites designated by the government. Although it is small and medium-sized, such as Seongnam, Gwacheon, and Yongsan, Gyeonggi-do, many real sites have been designated, and it is pointed out whether there should be a speculative investigation of public officials in these areas.
One day after the controversy was raised, the government took out measures to prevent recurrence. The key is to disallow land transactions for public officials and executives and employees of public corporations who perform tasks related to the creation of new towns unless they are intended for actual use. It is expected to be similar to restricting stock trading by employees of public institutions who do business related to securities. A government official said, “Through the 3rd new city total investigation, we plan to promptly prepare a system that can strictly respond to illegal matters by requesting an investigation or by prosecuting or prosecuting, and to prevent allegations of speculation in advance.”
/ Intern reporter Park Yena [email protected]
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