[Reporter’s Notebook] LH Silent on Cost Disclosure, Time to "Respond"

Published 12 Apr.2023 11:06(KST)

"Korea Land and Housing Corporation (LH) should also disclose apartment sale costs and let public enterprises compete in quality and price for the benefit of the people."

This statement by Kim Heon-dong, President of Seoul Housing and Communities Corporation (SH Corporation), at the evaluation presentation of the Segok 2 District project results on the 30th of last month has once again sparked the issue of 'disclosing sale costs.'

Typically, there is an information imbalance between consumers and producers. Until now, prospective buyers, who are price takers, had no standard to judge whether the sale price was appropriate, leaving them anxious about whether their home price was a 'rip-off.' At least public enterprises took the lead in making it possible to know how actual apartment sale prices were executed, somewhat quenching consumers' thirst for information.

However, the problem is that LH, which supplies the most housing among public enterprises, has maintained a silent stance despite losing 8 out of 9 lawsuits filed regarding cost disclosure so far. They keep repeating the position that "in the absence of social consensus on appropriate sale prices and costs, cost disclosure could lead to controversy over price appropriateness, so disclosure is limited to the parties involved depending on the lawsuit outcome."

Even the courts have judged that disclosing this information is the public's right to know, yet LH continues to appeal, wasting unnecessary social costs. If the profit and price are appropriate according to the quality of the apartment, there is no reason not to disclose it. Moreover, as a public enterprise owned by the people, transparently disclosing sale costs to citizens moving into apartments should be a matter of course.

We live in an era where even a 1,000 won pen is purchased after comparing price and performance. Needless to say when buying a house worth nearly 1 billion won. If it is public housing built and managed with citizens' taxes, the necessity is even clearer. Sale costs of housing supplied in the Seoul metropolitan area, including Seoul and Gyeonggi-do where land prices are highest, are disclosed, so there is no reason LH cannot do the same. Being afraid of anticipated social controversy before disclosure is practically admitting that their own actions are not above reproach. Now it is time for LH to respond to the social demand to prioritize the rights and interests of the people.