Mandatory Real Estate Transaction Reporting for LH Employees in Business Districts Starting May Next Year

Enforcement Decree of the Public Officials Conflict of Interest Prevention Act Approved at Cabinet Meeting
Applies to Employees of SH, GH, and Others

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] Starting from May next year, employees of public institutions directly handling real estate, such as Korea Land and Housing Corporation (LH), must report when purchasing real estate in development project zones under their own or family members' names. This obligation also applies to Saemangeum Development Corporation, Seoul Housing and Communities Corporation (SH), Gyeonggi Housing and Communities Corporation (GH), and others.

The Anti-Corruption and Civil Rights Commission announced that the enforcement decree of the "Public Officials Conflict of Interest Prevention Act," which includes these provisions, was approved at the Cabinet meeting on the 28th. This is a follow-up measure following the enactment of the Conflict of Interest Prevention Act in May, and the enforcement decree specifically lists the public institutions subject to the reporting obligation. Besides these institutions, if central government ministries, local governments, or public enterprises carry out public housing projects, urban development projects, urban regeneration projects, industrial complex development projects, station area development projects, or port redevelopment projects as defined in the enforcement decree, public officials of those institutions are also required to report.

The enforcement decree also stipulates that private stakeholders of public officials, retired officials who previously supervised or directed public officials, superiors currently supervising public officials, and those who have engaged in monetary transactions exceeding the permissible limits for gift acceptance under the Improper Solicitation and Graft Act are subject to the regulations. The exception to the restriction on negotiated contracts stipulated in the Conflict of Interest Prevention Act is limited to "cases where specific technical expertise is required or where there is only one producer of the relevant goods, making competition impossible." Additionally, the decree specifies the methods for reporting violations and the procedures for investigation by relevant agencies.

The Anti-Corruption and Civil Rights Commission plans to prepare and distribute a standard guideline for operating the conflict of interest prevention system by February next year and a work manual containing legal interpretation standards by March.

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