Investigation into LH workers' speculative land buying to intensify

Land Minister Byeon Chang-heum takes part in a meeting of economy-related ministries at the Government Complex Seoul, Wednesday. Yonhap

By Do Je-hae

President Moon Jae-in has ordered a thorough investigation into allegations of speculative illegal land purchases by employees of the state agency dealing with housing affairs, Cheong Wa Dae said Wednesday.

Moon's instruction came a day after allegations emerged that 14 former and incumbent employees at the Korea Land & Housing Corp. (LH) and their family members purchased land in Siheung and Gwangmyeong, two cities in Gyeonggi Province designated by the Ministry of Land, Infrastructure and Transport as new sites for a housing development project, based on inside government information prior to the project being announced last month.

“President Moon ordered a thorough investigation into all land transactions of employees ― and their families ― at the land ministry and other related agencies involved in the third round of new housing projects in Siheung, Gwangmyeong and other areas,” presidential spokesman Kang Min-seok said. “The President ordered the prime minister's office, jointly with the land ministry, to lead an intensive investigation to ensure all suspicions are completely cleared.”

The ministry launched an investigation into allegations raised by civic groups in a press conference the previous day, and suspended the employees from duty. According to the groups, 12 incumbent LH workers and two former ones, as well as their family members, bought farmland totaling 23,028 square meters from April 2018 to June 2020 based on internal, classified information.

The ministry announced the development plan last month to build about 70,000 new homes in the two cities. When initiating housing developments, the state pays significant compensation to affected land owners.

“We will be looking to find out whether there was any speculative land buying by LH employees in areas included in the third new city project,” a ministry official said. The third project includes some parts of Namyangju, Incheon, Hanam, Goyang, Bucheon, Gwacheon and Ansan.

Police also launched an investigation after the civic groups filed a criminal complaint. The groups said that what they have uncovered so far is only the tip of the iceberg.

The ruling Democratic Party of Korea (DPK) has also called for a thorough investigation. “The alleged speculation by employees of the top real estate agency undermine the government's measures to eradicate real estate speculation,” DPK floor leader Rep. Kim Tae-nyeon said in party meeting, Wednesday.

DPK Chairman Lee Nak-yon also said if the allegations are true, the employees “violated the law and betrayed the people.”

“If the allegations are true, it is a grave crime to seek personal gain by using inside information,” Lee wrote on Facebook.

Some have underlined the responsibility of Land Minister Byeon Chang-heum, as the alleged speculative buying by LH employees took place while he was serving as CEO of the agency. He served in the position from April 2019 through December 2020.