Currently, the Capital Markets Act collects 3 to 5 times the profits for unfair trade practices using internal information, and a plan to refer to this system is being actively reviewed.
On the 7th, the government announced a public appeal, presided over by Deputy Prime Minister Hong Nam-ki, and announced plans to prepare measures to prevent such recurrence of real estate corruption for public officials.
Youth Progressive Party’s LH employee land speculation protest performanceThe government strengthened internal regulations and punished significantly in order to fundamentally block public officials and employees of public institutions from using internal information related to development projects such as housing site development, such as new cities, to earn unfair profits through land speculation. Raise.
In particular, when private interests are obtained through such internal information, a plan to redeem the desired profits is promoted.
Currently, there is a device that uses internal information only in the stock market to recover unfair profits, but it is also expanding to the real estate market.
The current Capital Markets Act redeems 3 to 5 times the profits for unfair practices using internal information, and the government is actively working to apply the framework of this system to the real estate market.
According to housing related laws and internal regulations, the scope of confidential information, insider information, etc., and the scope of related information handlers will be wider, and the level of penalties for leaking or private use of them will also be greatly increased.
Under the current law, workers in related organizations such as the Ministry of Land, Infrastructure and Transport are subject to imprisonment for up to 5 years or a fine of up to 50 million won if they unfairly use or disclose inside information.
Real estate policy-related organizations, such as officials from the Ministry of Land, Infrastructure and Transport and employees of public institutions such as the Korea Land and Housing Corporation (LH), introduce the’real estate registration system’ as a way to strengthen internal control of their employees.
Literally, employees of these organizations are required to report changes in real estate properties such as new acquisitions.
In this case, when attempting to promote an important development project in a specific area, measures such as determining whether the property of an’inside person’ exists and reflecting it when reviewing whether to proceed in earnest, or recommending the early sale of the property to public officials can be taken.
Public officials or employees of public institutions caught in real estate speculation are permanently expelled from the real estate market even if they are expelled from the organization.
LH staff speculation suspicious land planted with saplingsThe government plans to restrict employment in related organizations to some extent for public officials who have committed irregularities, and will also block the acquisition of licenses for real estate-related industries.
A government official said, “If a public official who has to strive for stabilization of the real estate market dares to venture into real estate speculation, it means that he will be disappointed.”
In addition, the government is reviewing measures to aggravate punishment for so-called’four major market disruptions’ to eradicate real estate speculation.
The four major market disturbances are ▲ non-disclosure and use of internal information, speculation ▲ market price manipulation such as collusion ▲ illegal intermediation and disturbance such as reporting false sales ▲ unfair subscription such as illegal resale.
The level of punishment for illegal real estate activities continues to rise, and the punishment intensity for these four types is increasing.
For example, as a result of the 2019 law amendment, for acts that disturb the order of supply, such as illegal resale or illegal transaction of subscription bankbooks, if the illegal profits obtained from the act exceed 10 million won, a fine up to three times the amount is fined. done.
An amendment to the law has already been proposed to the National Assembly.
In addition, Democratic Party Rep. Moon Jin-seok proposed an amendment to the Special Public Housing Act that would impose a sentence of abandonment of one year or more and a fine of 3 to 5 times for leaking insider information.
Rep. Jang Gyeong-tae of the same party also issued the same bill to raise the sentence to imprisonment for up to 10 years or to a fine of up to 100 million won.
The government is currently grasping the status of real estate acquisitions for the last five years of the Ministry of Land, Infrastructure, and LH employees, spouses, and direct relatives through the Korea Real Estate Agency.
Through this, public officials will check if there is any pre-purchase of land in the 3rd new town, Gwacheon district, and Jangsang district in Ansan, and if they are suspected to have made speculative investments using internal information, they will ask the police for investigation.
An official from the Ministry of Land, Transport and Maritime Affairs said, “We are working hard to analyze the list of public officials from the real estate agency on the weekend as well.”
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