Preventing the 'Second LH Scandal'... Government Launches Special Investigation on Suspicious Agricultural Corporations Involved in Speculation

Saplings such as willow trees were planted on a piece of land in Mujinae-dong, Siheung City, Gyeonggi Province, in March when allegations of land speculation by some employees of Korea Land and Housing Corporation (LH) in the new towns of Gwangmyeong and Siheung in Gyeonggi Province were raised. / Siheung = Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has decided to identify corporations engaged in real estate business instead of farming after purchasing farmland through special investigations. This is to root out the recurrence of the 'Korea Land and Housing Corporation (LH) land speculation scandal' where speculation was rampant on farmland.

On the 3rd, the Ministry of Agriculture, Food and Rural Affairs announced that it has recently launched a special investigation targeting agricultural corporations suspected of farmland speculation. Earlier, the government amended the Farmland Act and the Act on the Management of Agricultural and Fishery Entities in August to prohibit agricultural corporations from engaging in real estate business on farmland. Corporations caught engaging in real estate business may be ordered to dissolve.

The Ministry of Agriculture, Food and Rural Affairs is conducting a farmland usage status survey together with local governments to investigate whether corporations owning farmland are engaged in agricultural management and whether they meet ownership requirements. It explained that the special investigation is also being implemented for suspicious corporations recently identified through the National Assembly’s audit and the Board of Audit and Inspection’s audit.

The targets of surveillance include corporations that have excessively received farmland acquisition qualification certificates (Nongchwijung) over the past five years or those whose names or business purposes include terms such as 'real estate,' 'development,' or 'REITs (Real Estate Investment Trusts).' The Ministry plans to check real estate transaction report data of the relevant corporations to grasp the status of farmland transactions and examine farmland usage and whether they are engaged in real estate business. If it is confirmed that the farmland is not used for agricultural management purposes or that the corporation engaged in real estate business, the ministry plans to file complaints or request farmland disposal orders or dissolution orders.

An official from the Ministry of Agriculture, Food and Rural Affairs said, "We will inspect agricultural corporations suspected of farmland speculation every year," adding, "We will strive to eradicate farmland speculation through thorough follow-up measures."

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