Bureaucratic housing estate in Gangnam, which has increased significantly due to a surge in house prices ▶ Click here for a larger view
Why live in Gangnam? If you look at the disclosure of the property of public officials recently published in the official gazette, there is an answer.
Among the high-ranking public officials, the actual housing property (based on market price) of bureaucrats residing in Gangnam was insignificant compared to that of non-Gangnam public officials.
There is a reason for the love of Gangnam by economic ministries such as a senior official in the Ministry of Land, Infrastructure and Transport in charge of housing policy, a member of the Bank of Korea Financial and Monetary Committee in charge of monetary policy, a high-ranking position in the financial policy authorities, and the Ministry of Strategy and Finance in charge of economic policy.
◇ The property of a bureaucratic apartment living in Gangnam, about 1 billion won more than the reported amount
Cheongdam-dong, Gangnam-gu, the head of the Blue House Policy Office, Kim Sang-jo, the coordinator of economic policy, reported an apartment (120.22㎡) in Cheongdam-dong, Gangnam-gu, at 1,158 million won, about 270 million won higher than before. A similar counterweight for this apartment has not been dealt with since the first floor was sold for 1.65 billion won in December 2019. Considering that apartment prices in Gangnam soared last year, it is estimated to exceed 2 billion won now.
Eun Seong-su, chairman of the Financial Services Commission, in charge of financial policy, reported that the apartment in Jamwon-dong, Seocho-gu (84.87㎡) was increased by about KRW 300 million to 1.23 billion KRW, but last February, the apartment in the flat area was 2 billion KRW (7th floor). It was a deal. Chairman Eun reported that his property increased by about 722 million won to 3.92 billion won, but when the apartment market price is reflected, it will increase to 4.7 billion won.
Bank of Korea governor Ju-yeol Lee, who holds the key to determining the standard interest rate, reported an apartment in Jagok-dong, Gangnam-gu, Seoul (101.94㎡) under the joint name of a couple at 1.32 billion won, about 80 million won more than before. This balance belt was traded for 2,500 million won on the 6th floor in February. The actual value was about 1 billion won higher than the reported amount.
The Minister of Land, Infrastructure and Transport Byun Chang-heum, who is in charge of housing policy, reported an apartment in Bangbae-dong, Seocho-gu (129.73m2), at 653 million won, which is 63 million won more than before. This equilibrium has not been traded since 2006, but an exclusive area of 105.74m2 with a much smaller acreage was traded for 1.48 billion won (5th floor) in January. Therefore, it is estimated that Byun’s apartment market price will be more than 1 billion won higher than the reported value.
Minister of Food, Agriculture, Forestry and Fisheries Kim Hyun-soo reported the apartment in Jungang-dong, Gwacheon-si (157.70㎡) for 1,275 million won. The 157m2 of this apartment was traded at 2.45 billion won in January last year. The exclusive area of 151.94m2 was sold for 2.13 billion won on the first floor last December. It should be considered that the actual transaction price is more than 1 billion won higher than the reported amount.
Minister of Science and Technology Information and Communication Choi Ki-young reported the apartment (139.74㎡) in Bangbae-dong, Seocho-gu, for 1.42 billion won under the joint name of his spouse. Reflecting the standard market price, it was reported about 400 million won higher than the previous one, but an apartment in the same equilibrium was traded at 2.45 billion won (10th floor) in December of last year. There was a difference of about 1 billion won.
Seoul National University President Oh Se-jeong reported the apartment (175.92㎡) in Apgujeong-dong, Gangnam-gu, for 2,383 million won under a joint name with his wife. President Oh raised the reported amount by about KRW 600 million, reflecting the fluctuations in the individual publicly announced land price. However, the 8th floor of the apartment was sold at 4.425 billion won in December of last year. The gap between the reported price and the actual transaction price is about 1.7 billion won. President Oh reported that the total property was 5,311 billion won, but reflecting the actual value of the apartment, it is more than 7 billion won.
Disclosure of ‘2021 Regular Property Changes for Public Officials’▶ Click here for a larger view
◇ Intensifying polarization of housing property with non-Gangnam officials
Even among high-ranking officials, the polarization of property was severe depending on whether or not they live in the Gangnam area. I don’t know what it looks like on the outside, but on the inside I feel a lot of deprivation.
Deputy Prime Minister Yu Eun-hye and Minister of Education reported an apartment (83.73㎡) in Jungsan-dong, Dong-gu, Ilsan, Goyang-si, Gyeonggi-do for 200 million won. In December of last year, this apartment was sold at 275 million won on the 8th floor and 322 million won on the 10th floor.
Financial Supervisory Commissioner Yoon Seok-heon reported that an apartment in Udu-dong (146.03㎡) in Chuncheon City was 200 million won. Earlier this month, the fifth floor of a similar equilibrium was traded for 360 million won.
Defense Minister Seo-wook reported that the apartment in Hongeun-dong, Seodaemun-gu (142.98m2), was priced at 665 million won. The flat belt like this apartment was sold on the 11th floor in February for 1.06 billion won. There is a difference of about 400 million won between the declared price, which is the reported value, and the actual transaction amount.
Choi Jong-gun, the first vice minister of the Ministry of Foreign Affairs, reported an apartment (134.08㎡) in Haengsin-dong, Deogyang-gu, Goyang-si, at 600 million won, 60 million won higher than before. Last January, the 6th floor of a similar equilibrium was traded for 830 million won, which was about 230 million won.
Kim Jae-shin, vice chairman of the Fair Trade Commission, reported an apartment (85㎡) in Saerom-dong, Sejong-si, at 343 million won, which is about 35 million won higher than before. Earlier this month, the 17th floor of a similar equilibrium was actually traded for 860 million won. There is a difference of more than 500 million won. Looking at this, it is less than that of Gangnam, but it seems clear that the public officials living in Sejong City were hit by the surge in apartment prices last year.
It was found that the average property reported by 1,885 high-ranking public officials subject to property disclosure increased by about 130 million won per person on average from the previous report. have.
◇ Need to improve property reporting standards that cannot reflect reality
Property reports for public officials are not simple and complex in the case of housing. For example, public officials who were subject to reporting prior to July 2018, when the system was changed, reported at the published price, but public officials who became subject to reporting after that time were required to report the higher of the published price and the actual transaction price. The actual transaction price referred to here is not the market price, but the amount when the person subject to report acquires the relevant home.
Therefore, if the house price rises a lot, the difference between the reported amount and the current market price will inevitably widen. This is because, if the published price cannot keep up with the actual transaction price, and if the house is not sold but continues to be held, only the change in the disclosed land price from the initial acquisition price needs to be reflected in the property change report.
Due to these circumstances, just because there is a difference between the reported amount and the actual price, it cannot be said that the report is wrong, but it is undeniable that the original purpose of the disclosure of the property has faded.
Professor Kwon Dae-jung of the Department of Real Estate at Myongji University said, “In the case of the published price, only 70% of the market price for apartments and 68% of the land price can be reflected. If the price rises, the gap between the market price and the published price will inevitably increase.”
However, it is not easy to ask them to report by the current generation. The market price is volatile day by day and it is not public statistics, so it is not easy to secure public confidence.
However, Go Jong-wan, director of the Korea Asset Management Institute, said, “To preserve the purpose of the disclosure of the property, it is necessary to reflect the actual transaction price so that there is no illusion.” “It is desirable to match the market price as much as possible.”
An official from the Government Officials Ethics Committee said, “There are various opinions on the standards of public officials’ reporting and public property,” and “we are considering improving the system in a way that reflects the actual value of property as much as possible.”
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