Lee Jae-myung on Controversy Over Excess Profit Recovery Clause: "The Truth Is That Additional Opinions Were Not Adopted"

[Image source=Yonhap News]

[Asia Economy Reporter Jeon Jin-young] Lee Jae-myung, the Democratic Party of Korea's presidential candidate (current Governor of Gyeonggi Province), said on the 20th regarding the controversy over the excess profit recovery clause in the Daejang-dong project, "The excess profit recovery clause never existed from the beginning, so it cannot be deleted," and added, "The claim of additional opinion deletion is false."

On the same day, when the National Assembly Land, Infrastructure and Transport Committee's audit was adjourned in the afternoon, Lee posted on Facebook, "I ask journalists to report based on facts that it was not the 'deletion of the excess profit recovery clause' but the 'non-adoption of the excess profit recovery opinion,' and to correct previous reports accordingly."

Regarding the reason for non-adoption, he explained, "A policy of 'pre-determining Seongnam City's share' was established to prevent private sector cost inflation, accounting manipulation, and lobbying," and added, "According to the policy, the public offering proceeded, and during detailed negotiations with the selected consortium of Hana Bank among three bidding companies, there was a practical opinion to additionally recover the expected profit excess in case of real estate market improvement, but it was not adopted during the approval process of the (Seongnam Urban Development) Corporation."

He further stated, "The request for additional burden contradicts the public offering content," and added, "While avoiding loss sharing in case of economic downturn, the claim to share additional profits in case of economic improvement was not accepted."

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