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[Asia Economy Yeongnam Reporting Headquarters, Reporter Park Dong-wook] The 'Daeim Public Housing District' (hereinafter Daeim District), implemented by the Korea Land and Housing Corporation (LH) and promoted as the 'largest new town' in the Gyeongsan area of Gyeongbuk, has been embroiled in speculation allegations involving public officials and LH employees.

Located adjacent to Suseong-gu, a prime land area in Daegu, it has been confirmed that land transactions through 'share splitting' surged two years before the Ministry of Land, Infrastructure and Transport announced it as a new housing site candidate in November 2017.

In particular, it has been revealed that among the landowners who purchased land through 'share splitting' was a public official from Gyeongsan City Hall, sparking public outcry demanding the identification of illegal speculators.

The period when another wave of transformation swept through Gyeongsan, which had undergone a near 'sea change' since the establishment of Yeungnam University campus in 1972, was November 2017.

At that time, the government announced a plan for public entities such as LH and local corporations to directly supply a total of 650,000 public rental housing units at a rate of 130,000 units annually. Nine areas were selected as initial development sites, with Daeim District in Gyeongsan being the only non-metropolitan area among them.

Supplying over 10,000 public housing units on 490,000 pyeong near Yeungnam University
Including public officials among buyers... Maximizing profits through 'share splitting'

The Daeim District in Gyeongsan covers an area of 1.63 million square meters (approximately 493,000 pyeong), encompassing Daepyeong, Imdang, Daejeong, Daedong, and Gyeyang-dong. The Ministry of Land announced plans to supply 10,900 households (including 2,700 newlywed hope town units) in this area.

Eight months after the announcement, in July of the following year, the Daeim District was officially designated as a public housing site. LH has been proceeding with compulsory land acquisition procedures targeting the relevant land, aiming to start construction in the second half of 2020 and complete it by 2025. The acquisition process is reportedly in its final stages despite residents' opposition.

Meanwhile, it has been revealed that land transactions surged one to two years before the public inspection and announcement date in November 2017. There were numerous cases of 'share splitting,' where multiple people pooled funds and registered shares of at least 400 square meters per person, raising strong suspicions of collective speculation.

According to the Ministry of Land, Infrastructure and Transport's 'Real Transaction Price Disclosure System,' the number of land transactions in Imdang-dong, where Daeim District is located, was around 30 cases in 2013 (32 cases) and 2014 (26 cases), but surged nearly threefold to 88 cases in 2015. It maintained 45 cases in 2016 and 66 cases in 2017, then sharply dropped to 16 cases in 2018 after the district designation announcement.

Similarly, in Daejeong-dong, transactions were only 23 and 24 cases in 2013 and 2014 respectively, but showed significant fluctuations with 37 cases in 2015, 48 in 2016, 27 in 2017, and 10 in 2018.

Detailed records indicating 'share splitting' were also uncovered. In November 2016, three individuals residing in Gyeongsan and Daegu jointly purchased 1,210 square meters of paddy and field land (land category: rice field) in Daejeong-dong within Daeim District for over 420 million won, dividing the ownership equally into thirds (403 square meters each). Such cases are countless in other paddy and field land transactions as well.

Gyeongsan Daeim District Residents' Countermeasure Committee submits petition to LH
"Identify illegal speculators... Exclude 'share splitting' owners from indirect compensation"

Among the landowners who purchased land through 'share splitting' was confirmed to be a public official from Gyeongsan City Hall. Locally, rumors abound that city hall officials, LH employees, their families, and acquaintances have purchased land within this district.

The real estate industry analyzes that the rampant 'share splitting' of shares of 400 square meters or more before the public inspection and announcement date was aimed at maximizing profits. Landowners meeting these conditions can receive additional compensation as negotiation transfer land (so-called '협택') or living measure land preferentially over general demanders, separate from cash compensation during land acquisition.

As these circumstances have been gradually revealed, the Gyeongsan Daeim District Residents' Countermeasure Committee sent a petition to LH on the 12th, demanding the identification of illegal speculators among employees and related parties, and exclusion of 'share splitting' owners from indirect compensation.

In the petition, the committee stated, "Among the landowners in Daeim District, many purchased land using development information shortly before the public inspection and announcement date for designation as a public housing district in November 2017," and requested, "Please identify and strictly punish illegal speculators among LH employees and related parties."

They added, "During this period, many speculators who were not actual farmers jointly purchased land and registered ownership through share splitting, so these landowners should also be excluded from indirect compensation."

Representatives of landowners incorporated into the Daeim District also claimed to Gyeongsan City, "Among city hall officials, there are cases suspected of speculation, such as purchasing land in this district aiming for compensation and price differences or jointly purchasing land with several people through share splitting," and insisted, "The city should conduct a full-scale investigation."

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