Disadvantages Including Employment Restrictions for Public Officials Involved in Speculation

The Party, Government, and 청 to Announce Eradication Measures on the 28th

Minister of Land, Infrastructure and Transport Byeon Chang-heum is attending the high-level party-government-civil cooperation meeting on measures to eradicate real estate speculation held at the National Assembly on the 19th, greeting attendees. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jo Gang-wook] In the future, public officials and executives of public institutions related to real estate policies, such as the Ministry of Land, Infrastructure and Transport and Korea Land and Housing Corporation (LH), will be banned from employment in related institutions if they commit illegal acts related to real estate speculation. Additionally, if they resign after disciplinary action, they will be prohibited from obtaining a real estate agent license. They must register any real estate they own and report it in advance when conducting transactions.

According to the government on the 25th, the government and the ruling party plan to hold a high-level party-government-civil meeting on the 28th to discuss measures to eradicate speculation and prevent recurrence. The speculation eradication measures, triggered by the LH speculation scandal, are expected to be announced as early as that day. Since the incident, the government has formed a task force (TF) consisting of the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of the Interior and Safety, and Financial Services Commission to prepare measures to eradicate speculation.

The measures are expected to include restrictions on employment in land and housing-related institutions for those who commit illegal acts such as speculation using undisclosed information. A recent controversy arose over a former LH employee, Mr. A, who traded 15 houses under his own and family members' names, was disciplined, resigned, and then re-employed at the Saemangeum Development Corporation under the Ministry of Land, Infrastructure and Transport. Mr. A did not disclose the disciplinary action of a reprimand received at LH when submitting career documents for a career recruitment announcement in December 2018. He joined as a grade 3 employee and was promoted to grade 2 audit office chief last year. The Saemangeum Development Corporation excluded the employee from duties on the 22nd and decided to take personnel action after legal consultation. Additionally, the Anti-Corruption and Civil Rights Commission has started a special inspection of recruitment practices at 25 public institutions under the Ministry of Land, Infrastructure and Transport.

In particular, if speculation is detected and disciplinary action is taken resulting in suspension from duty, measures to restrict obtaining real estate-related professional licenses such as real estate agent or appraiser are also being considered. This is interpreted as a measure to fundamentally block cases like that of LH employee Mr. B, who became famous as a ‘top instructor in land auction’ but was suspended from duty for reusing information learned during work after resignation.

The government is considering a combined real estate registration and reporting system for public officials and executives related to real estate policies. There is also a possibility of expanding the scope to all public officials. A plan to recover up to five times the unfair profits gained from illegal transactions may be applied not only to public but also to private sectors, with a decision expected on the day.

However, the LH innovation plan, initially scheduled to be announced together, may be delayed. There are concerns that a large-scale organizational restructuring could reduce work efficiency and disrupt supply policies such as the 3rd new town projects, which have been carefully prepared. There is talk of leaving core functions such as land supply and new town development at LH, while separating functions like residential welfare and housing construction. Other options under consideration include dispersing authority and roles related to non-core functions to local governments or local public enterprises, or establishing a ‘Residential Welfare Agency’ as a government organization.

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