National Assembly Land, Infrastructure and Transport Committee Passes 'LH Prevention Act' Imposing 3-5 Times Fines for Profiting from Non-Public Information

On the 18th, members of the Seongnam Residents' Solidarity held a press conference in front of the Blue House Fountain in Jongno-gu, Seoul, urging the eradication and expansion of the three major illegal acts by LH (land speculation, withholding of housing relocation expenses, and construction corruption) to eliminate vested interests and violations of housing rights. Photo by Moon Honam munonam@

[Asia Economy Reporter Park Cheol-eung] A bill to strengthen penalties for the disclosure of non-public information and real estate transactions as a measure against speculation by some employees of Korea Land and Housing Corporation (LH) has passed the National Assembly's standing committee. It will be implemented after passing the Legislation and Judiciary Committee and the plenary session.

The National Assembly Land, Infrastructure and Transport Committee announced on the 19th that it held a plenary meeting and processed 41 bills, including the amendment to the Special Act on Public Housing.

The amendment to the Special Act on Public Housing prohibits persons who receive non-public information from employees of public institutions or acquire it by unfair means from using that information to trade or disclose real estate, etc.

In addition, the Minister of Land, Infrastructure and Transport is required to conduct regular investigations on violations annually and notify the Public Officials Ethics Committee of the results. When violations are found, the bill mandates reporting to investigative agencies or implementing security management improvement measures.

The fines for disclosure and unauthorized use of non-public information are set at an amount equivalent to three to five times the profits gained from the violation, and imprisonment is to be increased depending on the scale of the profits. The bill also includes provisions to confiscate and recover property or financial gains obtained through crimes.

The amendment to the Korea Land and Housing Corporation Act prohibits not only current executives and employees but also retirees within 10 years from engaging in real estate transactions using non-public information related to the corporation's work.

Additionally, the amendment to the Urban Development Act establishes penalties for using information obtained during urban development projects for purposes other than intended, providing it to third parties, or disclosing it.

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