Jeong, at LH Incident Ministerial Meeting, "Suspected Speculators, Forced Land Disposal"... Byun Chang-heum Also Attended (Comprehensive)

LH Follow-up Measures Ministerial Meeting

Minister of Land, Infrastructure and Transport Byeon Chang-heum is reviewing materials at the follow-up measures meeting of related ministers for LH held at the Government Seoul Office Building on March 14, 2021. Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] The government announced that it will push for forced disposition measures on farmland for 20 suspected speculators confirmed by the previous government joint investigation, including employees of Korea Land and Housing Corporation (LH), depending on the investigation results.

Prime Minister Chung Sye-kyun chaired the ‘LH Follow-up Measures Ministers’ Meeting’ at the Government Seoul Office Building on the afternoon of the 14th and stated in his opening remarks, "We will strictly and thoroughly manage pre- and post-acquisition controls on farmland to prevent speculators from using farmland as prey for speculation." He also said, "Employees of Korea Land and Housing Corporation (LH) will be prohibited from acquiring land for purposes other than actual use." This is aimed at fundamentally blocking land transactions for speculative purposes related to the illegal speculation by LH employees who abused non-public internal information.

Attending the ministers’ meeting were Prime Minister Chung, Kim Hyun-soo, Minister of Agriculture, Food and Rural Affairs, Byun Chang-heum, Minister of Land, Infrastructure and Transport, Koo Yun-cheol, Director of the Office for Government Policy Coordination, Kim Dae-ji, Commissioner of the National Tax Service, and Kim Chang-ryong, Commissioner of the National Police Agency.

The government explained that if the joint special investigation headquarters led by the police confirms speculative circumstances of the suspected speculators through investigation, local government heads can impose disposal obligations on the owners according to the current Farmland Act. If the disposal order is not executed without justifiable reasons, a penalty equivalent to 20% of the farmland’s land value will be imposed annually.

Minister of Land, Infrastructure and Transport Byeon Chang-heum (left) is fist-bumping Police Commissioner Kim Chang-ryong as he enters the LH follow-up measures ministerial meeting held at the Government Seoul Office Building on the 14th. 2021.3.14 Photo by Yonhap News

Furthermore, the government plans to strengthen pre- and post-management to prevent farmland speculation. Prime Minister Chung said, "We will block speculation from the entry point by strengthening the farmland acquisition review process, including thorough examination of agricultural management plans and mandatory review by the newly established Farmland Committee for areas with speculation concerns." He added, "We will reinforce the farmland management system so that speculation cannot infiltrate through meticulous post-management such as mandatory utilization surveys for newly acquired farmland and enhanced penalties for illegal activities."

Prime Minister Chung also stated, "Before designating new project districts, we will conduct a full survey of employees’ land holdings, and if illegal speculation or suspicious activities are detected, we will take strong personnel actions such as dismissal by authority and refer cases for investigation and punishment." He continued, "We will strengthen monitoring systems to prevent leakage of internal information externally, and establish grounds to impose strict personnel measures and legal sanctions on both internal and external parties involved if speculation occurs due to such leaks."

Earlier, the government joint investigation team under the Office for Government Policy Coordination said regarding the 20 suspected speculators holding land in the 3rd New Town districts, "We will promptly push for forced farmland disposition measures depending on the investigation results." Regarding the upcoming investigation led by the National Police Agency’s joint special investigation headquarters, the government emphasized, "We will thoroughly investigate illegal speculation suspicions with a resolute determination, and punish strongly according to the results, while thoroughly recovering illegal criminal proceeds in accordance with laws and regulations."

Prime Minister Chung expressed condolences regarding two LH employees who recently took extreme measures, saying, "It is truly regrettable, and I hope such incidents never happen again."

However, he added, "This LH incident is only a part of the accumulated structural real estate corruption," and emphasized his determination to eradicate speculative corruption by stating, "The real estate cartel of privileged groups who have held power, capital, information, and public opinion has turned Korea’s land into a speculation ground and transformed housing into a means of wealth accumulation. Their real estate festival, where they had an easy advantage, must now end."

The government plans to promptly prepare measures to improve the farmland system, internal control plans for LH, and ‘measures to eradicate speculation and prevent recurrence’ discussed at the meeting.

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