As LH (Korea Land and Housing Corporation) employees’ suspicion of land speculation in a new city is growing, interest in LH reform is also increasing. Prime Minister Jeong Sye-gyun revealed the results of the first joint investigation on the 11th and said, “We will devise an innovation plan that cuts out the existing ills and transforms the world around the deputy prime minister so that LH can properly perform its mission.”
“LH, stricter rules than brokerage companies, excluding parachute bosses”
Experts view the reason for the allegations of speculation on the land as a’structural problem’ that goes beyond the’moral hazard’ (moral hazard) of employees. The temptation to speculate is great because of the nature of the business that carries out the entire process from land development to housing supply, but the safety measures to prevent this are extremely poor.
Currently, LH’s safety net for employees in departments dealing with new city development-related information is at the level of logging access to a PC to search for related information. To prevent data leakage, if you print related information, it is printed in an encrypted modifier, but if you shoot with a smartphone, you can easily remove the information.
Suspicion of land speculation by employees of the Korea Land and Housing Corporation (LH) is spreading, and suspicions of land dumping have been raised, such as building beehive-type prefabricated buildings in the Smart National Industrial Complex in Yeonseo-myeon, Sejong-si on the afternoon of the 11th, and seedlings are planted in the field. Has become. Reporter Kim Seong-tae
Inadequate safety device to prevent the temptation of speculation
Even if the employee’s fraudulent behavior was revealed, the punishment was negligible. For example, in 2018, there was an incident in which the development plan of the Samsong/Wonheung district in Goyang was leaked, but the disciplinary action received by the relevant staff was at the level of’warning’. In this background, there is a strong bond between LH employees. Among public corporations, LH is also active in meetings between retired and incumbent employees.
That’s why the controversy over’all courtesy’ is also huge. According to data submitted by LH by lawmaker Song Eon-seok of the National Assembly’s Land, Infrastructure and Transport Committee (the power of the people), 11 of the top 20 architects offices (based on order amount) that won private contracts at LH last year are from LH as their representatives or serve as executives. Appeared to be doing.
Experts point out that as it is an organization in charge of real estate information, regulations at the level of financial institutions dealing with stock information are necessary. Currently, LH’s own regulations have a’prohibition of the use of undisclosed development information’, but no employee has been caught or punished based on this provision in the past 10 years. First of all, the punishment rule is only’self-discipline based on internal regulations’.
On the contrary, public finance companies are prosecuted to the prosecution if such facts are discovered. Hwang Yong-sik, a professor of business administration at Sejong University, said, “Securities employees are not allowed to invest in stocks, and if the professor has an entrance exam among relatives, that year will be excluded from the entrance exam.”
Currently, the government is promoting related laws such as the Conflict of Interest Prevention Act. When the Conflict of Interest Prevention Act is introduced, LH employees are obligated to report in advance and avoid related duties prior to making real estate transactions. If it is recognized that he has taken advantage of property or property by using a secret on his job, it is confiscated or collected, and punished by imprisonment for not more than 7 years or a fine of not more than 70 million won.
The management of room only due to the appointment of President Parachute-Sik is also considered a problem. LH is all outsiders from 2009’s first president, Lee Ji-song (2009-2013), Lee Jae-young (2013-2016), Park Sang-woo (2016-2019), and Byun Chang-heum (2019-2020). In the industry, there was a perception that “as LH is in charge of the housing business and has a large influence among public companies, it is better to have a strong outsider who can prevent drafts from becoming the president.”
Dozens of large red artifacts promoting the Korea Land and Housing Corporation are attached to the fence near the Sejong City Government Complex. Reporter Kim Seong-tae
Parachute chief, internal crackdown neglected influence
However, it is pointed out that outsiders have been heading for more than 10 years and have not been able to take care of the internal housekeeping. For example, the former president Byun Chang-heum was controversial when it appeared that he only worked for an average of 7 days a month at the LH headquarters in Jinju, Gyeongsangnam-do at the time of his tenure. It is known that they stayed mainly in Seoul, where the National Assembly is located, or in Sejong, where major ministries such as the Ministry of Land, Infrastructure, and others are gathered.
Even when suspicions of speculation in the 3rd new town, such as planting rare trees, and splitting stakes, were raised, President Byeon was controversial with his remarks, “I was not trying to benefit the employees.” In the industry, it is pointed out that it is “a remark that cannot be said if you have been to the field.” An official in the construction industry who requested anonymity said, “Since the days of the president, it has been publicly said that all interest has been the Minister of Land, Infrastructure, and Transport.
Kang Gyeong-woo, a professor at Hanyang University’s Department of Construction and Transportation, said, “Since we are urgently pushing for work that requires a long-term plan (the creation of a new city), side effects have occurred,” he said.
Reporter Choi Hyun-joo [email protected]
