“In the Bosang District, the employees of Korea Land and Housing Corporation (LH) who speculated in their own name actually regard it as’sewage’. The real’gosu’ secretly buys land around the border to avoid acceptance at a gap of several tens of meters and wants to pop it tenfold. I do it.”
He has been in charge of compensation for more than 10 years, and after retirement from retirement, he is still working in the land compensation industry. The following is one question and one answer.
-Did you actually witness the behavior of insiders dumping the land during the district designation process?
“Yes. Even when I was serving as the compensation team leader of the industrial complex around 2009, the’discipline’ that used development information was already prevalent. By investigating the real estate transaction details and the land ledger, I also discovered the speculation situation of about 10 people involved. In my own name. That’s how I found only those who bought it.”
-How did they speculate?
“Entering into the industrial complex development district is accepted by LH with only connoisseurs. It is difficult for the original landlord to expect a large profit from the compensation cost alone. So, aiming for the right to sell, we build more than ten houses like matchboxes of four or five pyeong on one parcel. Such tickets are given to people. There are a lot of people to buy because the premium will be 100 million as long as a ticket becomes a target for sale.
When an industrial complex or a new city is built, a large-scale infrastructure is built into the empty field and a large population flows in. So, the real’jackpot’ comes from a boundary point that does not enter the district designation. Since the region itself is reorganized, it does not matter if it is blind.
And in the process of acceptance, the land compensation will come out from hundreds of billions to trillions. People who receive compensation don’t do stock accidents and car accidents. Usually, the money earned from the land is buried again. There are a lot of people who want to buy, but there aren’t many people to sell, so of course the price goes up.
-I don’t think it’s easy to figure out such a’boundary’.
“There is also a’level’ of development information. For example, when a plan to designate a district is established, all within LH will know even if it is not in charge. It means that the extent to which Wangsuk district enters Jinjeop-eup, Namyangju will leak out. People who only know are speculating on the land in the compensation district, aiming for the negotiated transfer of housing land or sale rights, etc.
The real masters are those who directly touch the border. The district plan is not decided immediately, but a concept that continues to change until it is finalized. Only those working in the development department, those who have the right to approve, and related service companies, can know the development drawings in real time.
When the district boundary is finalized, consultations with related ministries such as the Ministry of Education, the Ministry of Trade, Industry and Energy, and the Korea Water Resources Corporation take from 6 months to a year. It is to get the’time to speculate’.”
-Even if such insiders are caught, it seems difficult to prove the’intent to speculate’ rather than buying the land in the compensation district.
“I found all the speculators 10 years ago and found that there was no way to punish them. There is a suspicion, but if the person in question says,’I just bought it, the industrial complex came in next to it.’ You cannot prove your speculative intentions unless you confess, who will confess?
There are no legal provisions to punish. It was and is the same ten years ago. At the time, I had a prosecution and police investigation, but in the end I couldn’t even be prosecuted.
And the person who speculates in his own name is the person who came out of the boat. Most of them borrow names such as cousins, brother-in-law, and alumni who do not do well with direct names and will never get caught. It means that those who reported speculation in the media are just the tip of the iceberg.”
-How can we solve the problem of insider speculation that has been going on for decades?
“It’s hard for people to get away with the temptation. They memorize all the land numbers in the development area, and the landowner knows nothing, so the sale is at a bargain price, and if you buy it, it’s a situation where it’s a lot of fun.
The risk is limited to being dismissed from the job. It’s an opportunity to earn a few billion won, but is that company a large number? I think the only way to solve this dilemma is to create a method to redeem speculative profits several times to significantly increase the risk burden.”