Kyungsillyeon "SH Corporation Earned 5.5 Trillion Won Profit by Selling Public Land Over 10 Years"

SH Corporation "Development Profits Will Be Used for the Public Benefit of Seoul Citizens"

[Asia Economy Reporter Onyu Lim] The Seoul Housing and Communities Corporation (SH Corporation) has been accused by a civic group of making a profit of more than 5.5 trillion won by selling 870,000 pyeong of public land over the past 10 years.

The Citizens' Coalition for Economic Justice (CCEJ) held a press conference on the 29th to announce the results of their analysis of the profits from land sales in 23 districts by SH Corporation over the past decade. CCEJ referred to the 'Status of Land Sales by Project District (January 1, 2011 ? December 31, 2020)' and the 'Price Disclosure Documents' submitted by SH Corporation to the office of Ha Tae-kyung, a member of the People Power Party.

The analysis showed that from 2011 to 2020, SH Corporation sold a total of 867,993 pyeong of land across 28 project districts in Seoul. The total sales amount was 14.2363 trillion won, with an average price of 16.4 million won per pyeong. The average compensation price for the land was 3.34 million won per pyeong, and the land cost divided by the paid area was 6.33 million won per pyeong. The average development cost was 10.1 million won, which is three times higher than the compensation price.

CCEJ claimed that the total development cost of the land sold over the 10 years was 8.7679 trillion won, and SH Corporation made a total profit of 5.4684 trillion won from land sales. By project district, Magok District, which accounts for 43% or 370,000 pyeong of the total 870,000 pyeong sold, showed the largest profit margin with a development cost of 3.9624 trillion won and sales of 6.5009 trillion won, resulting in a profit of 2.5385 trillion won.

The district with the highest price difference per pyeong was Munjeong District, where the sales price was 28.58 million won and the development cost was 17.34 million won, resulting in a difference of 11.25 million won. CCEJ argued that considering the current market price of the land sold, which is 43.4 million won per pyeong, the total value would be 37.7 trillion won.

In response, SH Corporation explained, "We generate at least minimal profits within the scope of the price ceiling system and use them for rental housing management projects that incur an average annual deficit of 350 billion won," adding, "The development profits have been utilized for the public benefit of Seoul citizens."

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