Ministry of Land 1st Vice Minister: "No Conflict of Interest in Family-Owned Semi-Industrial Land"

Park Sun-ho, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport / Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lee Chun-hee] "My spouse received a gift from my father on my behalf. The land cannot be subject to the utilization plan for semi-industrial areas."

Park Seon-ho, the 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, actively clarified allegations of 'conflict of interest' raised regarding land and buildings owned by his family in semi-industrial areas, following the land he owns in Gwacheon-si, Gyeonggi Province. He explained that, as it is difficult to hold concurrent positions as a public official, his wife and other family members received divided gifts, and he has never been involved in any matters related to the semi-industrial areas that the government announced it would actively develop through the May 6 real estate measures.

In a statement released on the 6th through the Ministry of Land spokesperson's office, Vice Minister Park explained the acquisition background, saying, "The site located in Deungchon-dong, Gangseo-gu, Seoul, was purchased and a building was constructed by my father around 1978 when he founded a small and medium-sized manufacturing company related to automobile parts," adding, "After retirement, it was leased out, and in 2017, as my father found it difficult to manage the lease directly, he gifted one-third shares each to his three children."

The land in question is a 1,681㎡ plot located in Deungchon-dong, Gangseo-gu, with a building currently covering 1,912㎡. It is designated as a semi-industrial area in terms of land use. After the gift in 2017, the increase in the spouse's property value was first disclosed in March 2018 in the property details of Vice Minister Park (then Director of the Housing and Land Office).

In May, the government announced the "Plan to Strengthen the Housing Supply Base in the Metropolitan Area" (May 6 measures), proposing a public-private joint contest project to secure 7,000 households by 2022 through the development of semi-industrial areas in Seoul. The plan includes creating anchor industrial facilities and sequentially promoting redevelopment, lowering the mandatory industrial land retention ratio from 50% to 40% for three years, and offering incentives such as public acquisition of some industrial facilities using space support REITs.

Regarding concerns about conflicts of interest, Vice Minister Park dismissed them, stating that the "utilization of factory relocation sites within semi-industrial areas" under the May 6 measures is strictly "targeted at sites where large-scale factories of major corporations have relocated, aiming to create a mixed-use industrial and residential complex," and that "small factory sites owned by my family cannot be subject to this."

He also clarified that he has never specifically planned or instructed anything related to the semi-industrial area housing supply plan, emphasizing that since it does not apply to his family's factory, it does not affect the land's price in any way.

In response to criticism that gifting to his daughter-in-law was unusual, he explained that unlike his sister and brother who received direct gifts, he, as a public official, found it difficult to receive direct gifts. As a current public official, owning a factory and leasing it would require registration as a rental business and permission for concurrent positions, and it would be impossible to manage the factory operations himself. On the other hand, he emphasized that his wife has long assisted with factory management and currently handles necessary tasks related to factory leasing and management.

Vice Minister Park also cited media reports from 2018 when his property was first disclosed, stating that he had already sufficiently explained the related matters at that time.

Finally, Vice Minister Park expressed regret, saying, "It is very unfortunate that, following the land I own in Gwacheon, Gyeonggi Province, my family's real estate issues have been raised again," and added, "I cannot agree with vague allegations made without accurate facts or clear evidence, and I am considering necessary responses."

Meanwhile, Vice Minister Park was previously embroiled in controversy over a 2,519㎡ plot located in Gwacheon-dong, Gwacheon-si, Gyeonggi Province. Half of the land (1,259.5㎡) owned by Vice Minister Park is included in the mini-new town scale supply plan announced through the December 19, 2018 real estate measures. The district is scheduled to supply about 7,000 households across 1.55 million㎡ in Gwacheon-dong, Juam, and Makgye-dong areas.

In response, the People's Solidarity for Participatory Democracy requested an investigation from the Ministry of Land, claiming that Vice Minister Park's ownership of land in the housing supply target area poses a conflict of interest. They argued, "Vice Minister Park's duties are related to his personal property interests, making it difficult to expect fair performance of his duties under these circumstances."

Regarding this land, Vice Minister Park explained that it was gifted by his father and that he had no involvement in the designation process of the Gwacheon new town district. In a statement released on the 1st, he denied the allegations, stating that the new town planning process is conducted under strict confidentiality, he was not the responsible director and thus had no knowledge of any details, and that he only became aware of the plan when he was appointed vice minister four days before the plan was announced.

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