Hong Nam-gi: "LH Innovation Government Plan to Be Prepared Today... Considering Expansion of Post-Retirement Employment Restrictions" (Update)

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] On the 20th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced that he will prepare a government plan for organizational innovation regarding the real estate speculation allegations involving employees of Korea Land and Housing Corporation (LH) and initiate consultations between the ruling party and the government. He also stated that the previously announced measures to prevent speculation recurrence will be applied more strictly, and plans to expand the scope of post-retirement employment restrictions to eradicate corruption will be considered.

Deputy Prime Minister Hong presided over the 22nd Real Estate Market Inspection Meeting of related ministers at the Government Complex Seoul on the morning of the same day and made these remarks during his opening statement. He said, "The ‘LH Innovation Task Force,’ which includes related ministries and private experts, has been reviewing the matter, and at today’s (20th) meeting, we have virtually prepared a government plan and plan to proceed with consultations between the ruling party and the government. We will apply the March 29 measures to prevent speculation recurrence more strictly to LH, and in addition, we will further review expanding the scope of post-retirement employment restrictions for LH employees to eradicate corruption such as design competitions and bidding irregularities."

He added, "Regarding the reorganization and functional reform of LH, the government will review it under the principle of bold innovation that meets public expectations, consistent promotion of housing supply, and strengthening of residential welfare. Along with devising strong management innovation measures, we will hold LH accountable for this incident by conducting the strictest and most rigorous evaluation of LH’s 2020 management performance (to be announced in late June), and we will also review whether to revise previous evaluation results based on the investigation outcomes."

Regarding the real estate speculation allegations, the Financial Supervisory Service announced that following on-site inspections of financial institutions, it confirmed suspicions of illegal activities including the use of undisclosed information by 25 individuals including LH employees, public officials, and their relatives, suspected violations of the Farmland Act, and violations by 40 individuals. The case has been referred to the Joint Special Investigation Headquarters for the first round of investigation. The investigation targets include Buk Siheung Nonghyup, Nonghyup Bank Sejong Government Complex branch, Bucheon Livestock Nonghyup, and Nonghyup Bank Daegu Duryu branch. Deputy Prime Minister Hong stated, "Regarding allegations of improper handling of loans for farmland and commercial property purchases by employees, disciplinary procedures are underway through financial supervisory agencies, and necessary measures such as system improvements will also be taken."

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