Real Estate Speculation Corruption, Rooted Out... Party and Government "All Public Officials Must Register Assets, Illicit Gains Confiscated"

High-Level Party-Government Meeting on the 28th Discusses Measures to Eradicate Real Estate Speculation
Using Confidential Information for Speculation to Face 3-5 Times Fines and Forfeiture of Illicit Gains
Strengthening Criminal Penalties for Four Major Real Estate Market Disruptions
Recovery of Illicit Gains and Retroactive Application Possible

[Asia Economy Reporter Oh Ju-yeon] On the 28th, the Democratic Party of Korea and the government held a high-level party-government consultation at the National Assembly to discuss measures to eradicate real estate speculation related to the Korea Land and Housing Corporation (LH) scandal. The measures include confiscating unjust profits from real estate using undisclosed information and strengthening punishments up to life imprisonment. They also plan to hold a one-point session of the National Assembly in March to ensure the Conflict of Interest Prevention Act is passed.

Prime Minister Chung Sye-kyun (left) is speaking at the 4th High-level Party-Government Meeting held at the National Assembly in Yeouido, Seoul, on the afternoon of the 28th. The party and government discuss measures to block illegal activities, such as expanding public officials' asset registration, as well as innovation plans including the organizational restructuring of Korea Land and Housing Corporation (LH). On the right is Kim Tae-nyeon, Acting Leader of the Democratic Party of Korea. Photo by the National Assembly Press Photographers Group.

In his opening remarks, Kim Tae-nyeon, Acting Leader of the Democratic Party of Korea, said, "We sincerely apologize once again to the public who are disappointed by public officials' real estate speculation," and added, "We will investigate without exception public officials and their families suspected of speculation and nominee transactions, and if illegality is confirmed, we will impose strict punishments."

He stated, "On the 24th, the plenary session passed three laws to eradicate real estate speculation by public officials," and continued, "Going forward, public officials such as those at LH will face restrictions on real estate transactions, and if they speculate using undisclosed information, fines of 3 to 5 times the amount and confiscation of unjust profits will be possible, strengthening measures so that public officials cannot even think of speculation." He also mentioned plans to further institutionalize the eradication of public officials' speculation in the April National Assembly and to legislate additional laws requiring all public officials to register their assets. Furthermore, he added that they will hold a one-point session in March to pass the Conflict of Interest Prevention Act.

Through amendments to the Real Estate Transaction Reporting Act, a 'Real Estate Transaction Analysis Institute' will also be established to manage and supervise market-disturbing activities.

Acting Leader Kim said, "We will also strengthen criminal penalties for the four major market-disturbing acts: illegal and unfair speculation using undisclosed and internal information, high-level habitual and organized collusion to manipulate prices, illegal brokerage and disruption, and illegal resale and unfair subscription."

Regarding some criticisms that confiscation of unjust profits cannot be applied retroactively, Acting Leader Kim emphasized, "This is a misunderstanding," and stressed, "Under current law, unjust profits from public officials' real estate speculation can be confiscated, and this is already underway."

He explained, "Under the current Anti-Corruption and Civil Rights Commission Act, not only the speculative profits of public officials but also the speculative real estate itself must be confiscated, and the joint investigation headquarters is already applying this law to confiscate speculative real estate owned by public officials." He added, "If there are still insufficient parts, we will proceed with retroactive legislation to confiscate unjust profits."

Prime Minister Chung Sye-kyun said, "The special investigation headquarters must investigate all suspicions meticulously and swiftly with their fate on the line," and emphasized, "We will pursue real estate speculation suspicions to the end regardless of who is involved, and if corruption is confirmed, we will impose severe punishments and recover unjust profits beyond that."

Prime Minister Chung stated, "From now on, the use of undisclosed information for real estate transactions will be prohibited, and violations will be punished with up to life imprisonment and fines up to five times the speculative profits."

He added, "We have decided to mandate asset registration for public officials related to real estate such as LH and to generally restrict new real estate acquisitions," and continued, "The government plans to go a step further by expanding the scope of asset registration to all public officials as a measure to prevent corruption."

The contents agreed upon by the party and government are expected to be finalized and announced at the Anti-Corruption Measures Council chaired by President Moon Jae-in on the 29th.

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