LH Recurrence Prevention Measures Announcement Imminent... Maximum Life Imprisonment 'Iron Fist'

Expected Announcement at the Anti-Corruption Policy Council Meeting Hosted by the President on the 29th

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The government is set to announce a high-intensity anti-speculation measure as early as the 29th to prevent the recurrence of land speculation allegations involving employees of Korea Land and Housing Corporation (LH). If public officials used undisclosed information to gain large sums of money, they will face up to life imprisonment, and if they gain profits exceeding 500 million won, they will be sentenced to imprisonment for more than three years, among other strengthened punishments.

According to related ministries such as the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport on the 28th, the government will discuss and announce anti-speculation measures at an emergency anti-corruption policy meeting chaired by the president on the 29th after a government-party consultation on the same day. The announced measures will focus on strengthening monitoring through mandatory prior registration and enhancing punishments for illegal acts.

Employees of public institutions related to real estate policies such as LH and relevant central government ministries like the Ministry of Land, Infrastructure and Transport will be required to register their assets compulsorily, just like high-ranking officials, and must report the circumstances and sources of funds when acquiring real estate. Acquiring real estate related to their work field will be fundamentally impossible. Despite these regulations, if illegal real estate activities are committed using undisclosed information, the level of punishment will also be increased, including up to life imprisonment. Profits obtained illegally by those involved in public housing projects will be confiscated, and fines of three to five times the amount of the profits will be imposed. If profits exceed 5 billion won, the maximum penalty is life imprisonment; if profits are between 500 million and 5 billion won, imprisonment for more than three years will be imposed.

[Image source=Yonhap News]

In the case of LH, the same punishment regulations apply not only to current executives and employees but also to retirees within the last 10 years who use undisclosed information in real estate transactions. Third parties who illegally invested using undisclosed government information will also be punished at the same level.

Legislation containing these provisions (Public Officials Ethics Act, Special Act on Public Housing, LH Act) was passed by the National Assembly on the 24th, and it is expected that the preparation and implementation of measures will proceed quickly. The asset registration regulations will apply six months after the law is promulgated, and the punishment regulations will apply from the date of promulgation.

The government is also considering improving the management evaluation system to prevent moral hazard among public institution executives and employees. They are exploring ways to increase the scoring for ethical management and public interest and to deduct more points from management evaluations in various indicators when a 'major accident' like the LH incident occurs.

If a public institution receives a failing grade in management evaluation, in the worst case, the head of the institution may be dismissed, and executives and employees may have their performance bonuses reduced or denied. The government plans to announce measures to eradicate illegal real estate activities not only in the public sector but also in the private sector. Those who commit illegal real estate acts such as speculation using undisclosed information will be barred from employment at land and housing-related institutions and restricted from obtaining related licenses such as real estate agents and appraisers.

Measures to prevent farmland speculation are also being discussed. The upcoming announcement is expected to include mandatory agricultural management and strengthened supervision of farmland owned by non-agricultural persons.

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