“There is no profit for LH employees” Byun Chang-heum wrapped up his family in the meantime

As the wave of’speculation suspicion’ of the 3rd new city of the Korea Land and Housing Corporation (LH) employees is growing, Minister of Land, Infrastructure, and Transport’s remarks on’employee enveloping’ came up on the cutting board. Minister Byun was the head of the ministry that should conduct a thorough investigation into the alleged speculation and was the president of LH at the time of the 3rd new city where allegations of speculation arose.

Minister Byeon said in a press briefing on the 4th, “It was confirmed that some of the land purchases by employees were true. As the minister in charge of the relevant ministry and as the head of the agency who ran the agency just before, I apologize in the form of an apology.

However, after the briefing, I told a press reporter, “I don’t think (LH staff) knew the development information and bought the land in advance. I bought it because I knew it would not be possible to develop a new city, but I think it was suddenly designated as a new city.”

“It is foolish to buy land in a new city that is fully accepted. Sooyong buys at connoisseurs, so there is no merit. LH staff did not know the development information in advance and there was no profit.”

Minister Byeon’s remarks are controversial as the government has organized a joint investigation team to conduct a thorough investigation of six new cities in the third phase, Gwacheon, Gwacheon, and Jangsan, Ansan.

Lee Nak-yeon, the leader of the Democratic Party, also called Minister Byeon to the National Assembly on the 5th and said, “You must have a sense of responsibility enough to ask for an investigation before anyone else.”

After Minister Byeon’s remarks, there is growing disbelief about whether the results of the thorough investigation have already been determined. The Ministry of Land, Infrastructure and Transport, along with the Ministry of Public Administration and Security, the National Police Agency, Gyeonggi Province, and Incheon City, will participate in the joint investigation team that will conduct a thorough investigation.

Although six organizations participate, it is actually led by the Ministry of Land, Infrastructure and Transport. This is because the core of this total survey is the Korea Real Estate Agency (formerly the Korea Appraisal Agency), an agency under the Ministry of Land, Infrastructure and Transport. If you enter the personal information of a specific person into the real estate transaction management system of the Korea Real Estate Agency, you can know the land transaction situation.

Some point out that the content of Minister Byeon’s remarks is stubborn. The reason Minister Byeon said, “It is stupid to buy land in a new city that is fully accepted” is because of the land compensation standards. When the land it owns is accepted as a new city, LH buys the land through appraisal. It is a land compensation system. The land compensation fee is determined based on the appraisal amount, but the appraisal amount usually does not exceed 70% of the market price.

Because of this, so-called land investment experts do not count on the development site, but the land that is facing the development site is regarded as a yolk. This is because development profits can be enjoyed almost the same as the development target site, and profits can be obtained from the current generation without restrictions.

However, it is clear that LH employees, who were suspicious of speculation this time, sought compensation when they visited the land of Gwangmyeong-siheung, Gyeonggi-do, where they lived. Some lands are densely packed with willow trees, but the gaps between the trees are so narrow that no one can pass. This means that it is not for cultivation purposes.

When paying for land, you can also receive compensation for livestock or trees raised in the land. Trees are priced for compensation for each tree and for each type, and the king willow tree is a kind of tree with a high compensation price.

Moreover, land compensation is not just cash compensation. According to Minister Byeon’s remarks, landowners should only accept cash based on the appraisal value and hand over the land to LH. However, you are also given the right to get new land or apartments.

There are three main types. If you own a house and lived directly from one year before the residents’ public announcement date, you can receive a’migrant housing site’. It is the land where single-family houses are built.

If you do not meet the qualifications for a migrant housing site and have more than 1000㎡ (capital area) before the public announcement date, you can receive a “conventional transferor housing site”.

It is also a land for building detached houses. The price is the same appraised price as the price provided to the general public, but it is supplied first without competition. In 2014, the competition rate for detached housing sites supplied from Wirye New Town was 2746 to 1 at the highest.

You can even turn it into land. It is a reward for the great soil. It is to receive another land developed within the same district within the scope of the compensation amount. Residential areas of 60㎡, commercial and industrial areas of 150㎡, green areas of 200㎡, and other areas of 60㎡ or more can apply for large soil.

LH employees, who were suspicious of speculation, had conditions to receive land or large soil that was negotiated. An official in the real estate industry who requested anonymity said, “If I had only seen the controversial land once, I would not have said that if I had basic knowledge as the head of the Ministry of Land, which is in charge of real estate policy, there would be no profit.”

Reporter Choi Hyun-joo [email protected]