[2021 National Audit] 5 Corporations Involving Current and Former LH Employees... 22 Billion KRW Real Estate Speculation

[Asia Economy Reporter Park Ji-hwan] It has been revealed that the scale of speculation involving five real estate development companies, in which former and current LH employees were directly or indirectly involved, amounts to 22 billion KRW.

On the 6th, Kim Sang-hoon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, analyzed the 'Status of LH Speculation Allegations' submitted by the Ministry of Land, Infrastructure and Transport, Korea Land and Housing Corporation (LH), and Gyeonggi Southern Police Agency. According to the analysis, former and current LH employees either directly held shares or mobilized acquaintances and relatives to engage in real estate speculation. The confirmed amount of speculation to date reaches 21.79 billion KRW.

Among them, 3 to 4 LH employees participated as shareholders in the H corporation that led speculation in the Hyochon district of Jeonju, Jeonbuk. They invested approximately 16.79 billion KRW under the name of H corporation to purchase sports facilities and land in the planned development area. Operating these assets to date, they reportedly earned over 10 billion KRW in capital gains and facility operation profits within six years.

Previously, the N corporation, established by an LH employee and an acquaintance lawyer related to the Hyochon district in Jeonju, purchased land in the 3rd New Towns of Gwangmyeong and Siheung in Gyeonggi Province. Although the police revealed the speculation amount to be around 400 million KRW, it is presumed that they aimed for a surge in land prices through future land use changes or expropriation.

It was also revealed that three corporations involved in purchasing housing and officetels worth 4.6 billion KRW in the redevelopment districts of Sujin and Sinheung in Seongnam, Gyeonggi Province, after acquiring redevelopment information in advance, were linked to LH employees. Currently, the market value of the real estate they purchased exceeds 24 billion KRW.

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