Government Considers 'Real Estate Registration System' for Housing Officials... Hong Nam-ki Announces "Land Transaction Restrictions" (Comprehensive)

Public Appeal Regarding 'LH Land Speculation Allegations' Announcement

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance (left), is greeting after delivering the "Message to the People Regarding Real Estate" following the Real Estate Ministers' Meeting held at the Government Seoul Office on the morning of the 7th. 2021.3.7 Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Sun-hee] The government announced that it is considering the introduction of a 'Real Estate Registration System' for public officials belonging to ministries and agencies related to land development and housing affairs. This measure aims to strengthen internal controls in response to recent public outrage over allegations of land speculation by some employees of the Korea Land and Housing Corporation (LH).

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated during a 'public appeal' announcement at the Government Seoul Office on the morning of the 7th, "We will systematically establish fundamental measures to prevent recurrence in light of this incident," adding, "As part of strengthening internal controls, we will also consider introducing a system such as the Real Estate Registration System that allows for continuous monitoring." He further added, "Employees of ministries and agencies related to land development and housing affairs will, in principle, be restricted from land transactions within a certain scope, and in cases where land transactions are unavoidable, they will be required to report them."

Although there was no detailed explanation regarding the scope and method of the Real Estate Registration System, the emphasis on 'continuous monitoring' is interpreted as an intention to manage by requiring public officials involved in housing affairs to report real estate transactions regularly.

Deputy Prime Minister Hong said, "We will fundamentally block personal motives for deviation and also consider strengthening the management responsibility of the entire institution in cases of serious deviations," adding, "Illegally obtained profits will be recovered without fail to prevent such attempts from taking root again." This means that if speculative cases are confirmed in a specific institution, the head of the institution will also be held accountable.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is preparing to deliver a statement titled 'A Message to the People Regarding Real Estate' after concluding the Real Estate Ministers' Meeting held at the Government Seoul Office Building on the morning of the 7th. From left to right: Kim Dae-ji, Commissioner of the National Tax Service; Koo Yoon-chul, Director of the Office for Government Policy Coordination; Hong Nam-ki, Deputy Prime Minister; Byun Chang-heum, Minister of Land, Infrastructure and Transport; Lee Jae-young, Vice Minister of the Ministry of the Interior and Safety.
[Photo by Yonhap News]

Deputy Prime Minister Hong expressed "a profound sense of remorse" regarding the incident and offered a public apology, saying, "As the minister responsible for the economy and the comprehensive management of public institutions, I deeply apologize to the people." He emphasized that if real estate speculation is confirmed through the ongoing government joint investigation, "we will take measures such as requesting investigations and disciplinary actions with zero tolerance."

He also stressed, "The government will proceed consistently without any wavering to ensure that trust in real estate policies is not damaged," and added, "Housing supply measures, including the February 4th supply plan, will be carried out as scheduled."

Furthermore, regarding the 'four major market-disturbing acts'?speculation using non-public internal information, collusion and price manipulation, false listing reports followed by contract cancellations, illegal resale, and unfair subscription?he stated, "We will not only recover unjust profits but also consult to ensure that more than the gains are recovered by referring to penalties for unfair practices under the Capital Markets Act." Under the Capital Markets Act, those who gain profits or avoid losses through unfair trading practices may be fined up to twice the amount of the gains.

Deputy Prime Minister Hong reiterated, "The government will never hesitate to correct faults," and emphasized, "If it is an individual deviation, we will punish it severely, and if structural problems are identified, we will devote ourselves to establishing a systemic preventive structure."

Related ministries, including the Ministry of Economy and Finance, plan to focus discussions on the announced contents at the Real Estate Market Inspection and Related Ministers' Meeting scheduled for the 10th. In addition to Deputy Prime Minister Hong, the announcement was also signed by Jeon Hae-cheol, Minister of the Ministry of the Interior and Safety; Byun Chang-heum, Minister of Land, Infrastructure and Transport; Koo Yun-cheol, Director of the Office for Government Policy Coordination; and Kim Dae-ji, Commissioner of the National Tax Service.

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