▲ Real Estate Market Ministers’ Meeting.ⓒ Yonhap News
The government announced that it will come up with measures to prevent recurrence of land speculation in the third new city by the employees of the Korea Land and Housing Corporation (LH) and devise a plan for LH pangol metamorphosis by the end of this month.
Deputy Prime Minister of Economy and Ministry of Strategy and Finance Hong Nam-ki said, “The government will eradicate speculation in the public officials and reform real estate capture,” at the 17th meeting of ministers related to the real estate market held at the government building in Seoul on the 17th. “By the end of this month, the relevant countermeasures have been finalized and announced. We are working with the goal of doing it,” he said.
Deputy Prime Minister Hong added, “Currently, an investigation by the Joint Special Investigation Headquarters on the spouse and direct existence in relation to the LH incident is underway,” and added, “If a speculation charge is confirmed, we will punish severely and ensure that the speculative profits are recovered.”
Regarding the plan for the transformation of LH, he emphasized, “We are reviewing the most powerful and rational measures,” he stressed, “I will check all areas ranging from LH functions, manpower, and business structure as well as strengthening integrity and ethical management.” LH was launched in 2009 by combining the Korea Land Corporation (Earth and Construction) and Korea Housing Corporation (Jugong), and as of the end of last year, it has become a dinosaur organization with 9,500 employees and an asset of 185 trillion won.
While some people are raising the theory of LH dismantling, it is observed that the dismantling level of aerial decomposition will be avoided. At a briefing on the results of the first investigation of the LH incident on the 11th, Prime Minister Jeong Sye-gyun said, “We will promote the transformation of LH at the level of deconstruction. I will try to do it.” Deputy Prime Minister Hong also said at the meeting on the day, “To stabilize the real estate market, we are also paying special attention to the fact that there should not be a momentary gap in the promotion of LH’s existing housing supply measures.” Some experts point out that the problem cannot be solved by simple division of the organization, although it is necessary to approach it so that it is not even possible to commit corruption through a punitive penalty of an unimaginable level.
Deputy Prime Minister Hong said, “We are preparing measures from speculation prevention to detection, punishment, and redemption.” I explained that I would.
▲ Apartment sales.ⓒ New Daily DB
The government re-emphasized that the existing supply countermeasures will proceed without disruption. The intention is to block the spread of concerns from the market that the 3rd new town construction project will be disrupted, as the LH crisis will lead to a replacement by Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport, and the vacancy of the LH president will inevitably be prolonged due to reopening.
Deputy Prime Minister Hong said, “There are concerns that the construction of the 3rd new city, the August 4th, the November 19th, and the 2nd and 4th supply measures may be disrupted or retreat.” I will go out.”
The government’s decisive decision was based on the judgment that the price increase in the real estate market was gradually decreasing after the announcement of the supply plan. The Korea Real Estate Agency’s Seoul trading supply and demand (purchase advantage) index fell 3.2 points (P) from 110.6 in the first week of last month to 107.4 in the second week of this month. During the same period, KB Kookmin Bank’s statistics also fell 19.5p from 109.8 to 90.3. It is analyzed that even after the LH crisis, the trend of slowing growth continues.
Deputy Prime Minister Hong said, “If the plan is delayed or canceled without any countermeasures, it will make the homeless, the common people, the youth, as well as the future generations suffer enormous sense of loss and pain.” “We are going to proceed with advance subscription for a total of 62,000 households, including 30,000 households in July and 32,000 households next year.”
The government plans to disclose candidate sites in turn from the end of this month after reviewing 170 locations proposed by local governments in relation to public redevelopment projects among the 2 and 4 supply measures. Regarding the urban development project, it plans to select and disclose candidate sites with excellent business conditions among 25 autonomous districts in Seoul by the end of this month. It is an attitude that next month, the remaining new public housing site with 150,000 households will be verified and announced. Deputy Prime Minister Hong said, “In the case of the second housing site, we will analyze the details of land transactions before and after the announcement to find speculative forces.”
