Hong Nam-ki "Government Plan to Prevent Recurrence of LH Scandal... Thorough Investigation of Illegal Loans in Banking Sector" (Comprehensive)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "16th Real Estate Market Inspection Meeting of Related Ministers" held on the 12th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Kim Hyunjung] On the 12th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced that the government will prepare and announce a government plan for measures to prevent recurrence related to speculation allegations involving employees of Korea Land and Housing Corporation (LH). In particular, he mentioned the possibility of illegal loans from banks as the background of this speculation incident and announced a large-scale investigation by supervisory agencies.

On the morning of the same day, Hong held the 'Real Estate Market Inspection Meeting of Related Ministers' at the Government Seoul Office and said in his opening remarks, "This is only the beginning of the investigation." He repeatedly expressed his determination for investigation and punishment using expressions such as 'definitely,' 'from the beginning,' 'strongly,' 'exemplary punishment,' and 'full effort.' In particular, he emphasized, "Taking the LH incident as an opportunity, the government will devise all possible measures to eradicate real estate speculation and prevent recurrence, especially fundamental measures for public officials and the public service who should take the lead," and "We will prepare and announce the government plan as soon as possible."

The key points of the government plan include ▲ preventive measures to ensure that speculation and illegal/unfair acts are not attempted from the outset ▲ establishment of a system to detect such acts if attempted ▲ exemplary punishment measures for strong penalties once detected ▲ and recovery measures to reclaim illegal and unfair gains beyond mere punishment.

Considering that the background of this incident involves large-scale illegal and unfair loans from banks, he also demanded a thorough investigation by supervisory agencies. He said, "This LH speculation incident was possible because large-scale loans were collectively and intensively made at specific bank branches," and added, "It is necessary to check how such loans were possible, whether there were any illegal, unfair, or negligent acts during the loan process, and whether there are any blind spots or points for improvement. Supervisory agencies such as the Financial Supervisory Service should thoroughly investigate the process."

Hong seemed aware of market concerns that the LH incident might hinder the implementation of previously announced supply measures, and stressed, "Real estate policies, including the 2.4 Housing Supply Plan, will be carried out without disruption according to the already announced plans and schedules," introducing specific progress. He explained, "Regarding the urban development projects under the 2.4 supply plan, we have held business briefings for 25 autonomous districts in Seoul, conducted over 500 private consulting and counseling sessions, and based on this, we plan to select and publicly announce candidate sites with excellent project conditions by the end of March after receiving recommendations from local governments," adding, "The remaining new public housing sites for about 150,000 households will be thoroughly prepared and verified in advance and announced in April." He further added, "The pre-sale schedule for the 3rd new town, scheduled for July, will proceed as planned regardless of the progress of related investigations and prosecutions."

Meanwhile, following the announcement of the first investigation results by the government joint investigation team targeting 14,000 employees of the Ministry of Land, Infrastructure and Transport and LH the previous day, the government announced that investigations of public officials and employees of local governments and public institutions other than LH, as well as investigations into spouses and direct non-lineal relatives and allegations of proxy speculation, will also be conducted by the joint special investigation headquarters.

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