LH·K-Water, Unjust Payment of 11.4 Billion KRW in Land Compensation for Large-Scale Housing Development Project

170 Officials Disciplined... 251 Cases of False Cultivation Confirmed, Related Persons Referred for Investigation
Promotion of Internal System Improvement for Project Operators to Prevent Improper Compensation Payments

Unjeong 3 District, Paju-si, Gyeonggi-do

[Asia Economy Reporter Kwangho Lee] A large number of irregularities, including improper compensation payments, have been detected in large-scale land development projects implemented by Korea Land and Housing Corporation (LH) and Korea Water Resources Corporation (K-water). The government has requested investigations into the recovery of improperly paid amounts, disciplinary actions against responsible personnel, and those involved in falsifying cultivation verification.

The Government Joint Anti-Corruption Promotion Team under the Office for Government Policy Coordination announced on the 9th that from August last year to March this year, in cooperation with the Ministry of Land, Infrastructure and Transport and the Korea Appraisal Board, it inspected the appropriateness of compensation payments in large-scale land development projects carried out by LH and K-water, uncovering a total of 1,843 cases involving improper compensation payments amounting to 11.4 billion KRW.

This includes land category compensation of 4.3 billion KRW (58 cases), farming compensation of 2.7 billion KRW (977 cases), business compensation of 3.6 billion KRW (209 cases), relocation compensation of 400 million KRW (590 cases), and waste landfill compensation of 400 million KRW (9 cases).

This inspection was conducted as an expanded review of large-scale land development projects, considering the results of industrial complex inspections carried out last year.

Among ongoing development projects, 16 sites were inspected based on project scale and compensation status, including Goyang Jichuk, Guri Galmae, Asan Tangjeong, Siheung Eungye, Hanam Gamil, Paju Unjeong 3, Busan Myeongji, Gwacheon, Pyeongtaek Godeok, Hanam Misa, Incheon Geomdan, Wirye, Hwaseong Dongtan 2, (K-water 3 districts) Siwha MTV, Busan EDC, and Gumi Industrial Complex.

Examples of improper payments include cases where buildings were unauthorized but compensated as if they were legitimate land uses: compensation was paid as residential land (68 million KRW) instead of the original land use such as fields or forest land; forest land that could not be considered farmland was compensated as fields (103 million KRW).

Additionally, farming compensation (2 million KRW) was paid for land that was not farmland, or farming compensation (12 million KRW) was paid to landowners who submitted cultivation verification documents falsely confirmed by village chiefs.

Other cases include business compensation (21 million KRW) paid to individuals operating parcel delivery services in unauthorized buildings, relocation compensation (7 million KRW) paid to those illegally residing in warehouses converted from non-residential buildings, and compensation paid at normal land prices (141 million KRW) without deducting costs for waste disposal despite value depreciation due to environmental pollution, where restoration costs should have been deducted.

The Office for Government Policy Coordination has demanded the recovery of 11.4 billion KRW in improperly paid land compensation from the relevant institutions, disciplinary action against 107 personnel who neglected compensation duties, and investigation requests for 251 cases involving landowners and village chiefs related to falsified cultivation verification documents.

Furthermore, to prevent recurrence of improper compensation payments, LH and K-water have been urged to improve work processes by enhancing the capabilities of compensation officers, supporting their tasks, improving compensation systems, strengthening supervisory functions, and reinforcing accountability of approval authorities.

The Office for Government Policy Coordination stated, "We will disseminate the major issues detected this time to central government ministries, local governments, and public institutions conducting compensation work beyond LH and K-water to prevent similar cases from occurring," and added, "We will continue to guide and supervise to ensure a fair and transparent compensation system is established."

This content was produced with the assistance of AI translation services.