LH Employees Even Resort to 'False Address Registration' Targeting Priority Compensation for Large Land Swaps at Factories

Mr. A Purchased Siheung Factory Building in 2019 and Moved Resident Registration in 2019
Eligible as Top Priority for Land Compensation for Residents Living Over 1 Year
Can Receive Priority Supply of Land with Relatively Better Location and Use

A panoramic view of the Gwangmyeong-Siheung district where employees of Korea Land and Housing Corporation (LH) concentrated land purchases before the announcement of the new town (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] It has been confirmed that some employees of Korea Land and Housing Corporation (LH) purchased land within the 3rd New Town Gwangmyeong-Siheung district and even registered their residence under false pretenses in a factory where actual residence is practically impossible. Experts analyze that this was likely done considering the regulation that gives priority to landowners who reside directly on-site during large-scale land compensation following the designation of a new town.

On the 10th, Asia Economy checked the registry records around Gwarim-dong, Siheung City, and found that Mr. A purchased a two-story building located in Gwarim-dong, Siheung, under his name on September 4, 2019. The 330㎡ land on which the building stands is co-owned with two others. One of the two is presumed to be a family member as the first letters of their surname and given name are the same as Mr. A’s.

The building operates a factory on the first floor. The second floor is a small rooftop room, but it also does not provide a living environment suitable for residence. A nearby factory official said, "Sometimes factory workers use it as a resting space, but no one lives on the second floor of the building."

Nevertheless, Mr. A’s recent registered address in the registry is recorded as the factory building, raising strong suspicions of false residence registration. Since he does not actually live there, it is highly likely that he moved the address to Siheung City, Gyeonggi Province, only to gain an advantage in large-scale land compensation. At the time of purchasing the land and building in September 2019, Mr. A’s address was recorded as Gangnam-gu, Seoul, but in April 2020, when he traded four nearby lands suspected of speculation, his address was recorded as the factory building he purchased.

According to the priority list for large-scale land compensation announced by LH in areas such as Hanam Gyosan, local residents who have owned the land and lived there directly for at least one year before the announcement date are given first priority; local residents who are not first priority are second priority; and owners who only hold the land without direct residence are third priority. Higher priority allows receiving land with more favorable location and designation. When determining the third priority, criteria such as ‘residing within a 30 km radius of the land’ are applied. Since Mr. A’s registered address has been the factory building since September 2019, he meets the conditions to receive large-scale land compensation as a first priority.

Meanwhile, the site where Mr. A’s speculation suspicion was raised is not the only one. The building is located about 200 meters in a straight line from four sites suspected of being purchased for land compensation. Mr. A is listed as a co-owner of all four sites.

An industry insider explained, "Moving the resident registration to a factory rather than a house while purchasing land is only possible if one fully understands the large-scale land compensation regulations."

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