‘LH officers will solely be allowed to amass land for precise use’
Residences in Seoul (Yonhap)
Following an enormous actual property hypothesis scandal involving former officers and outgoing Korea Land & Housing Corp. officers, the federal government is anticipated to start dialogue this week on methods to reform the plagued state property developer. scandalous.
At a ministerial-level assembly on Sunday, Prime Minister Chung Sye-kyun pledged an entire overhaul of the LH to stop its officers from partaking in misconduct resembling actual property hypothesis.
“We are going to give you an inside monitoring system to stop LH officers from sharing or disclosing inside details about growth tasks and making speculative actual property purchases,” Chung mentioned.
Chung additionally mentioned that LH officers can be prohibited from buying actual property for any goal aside from precise use. He mentioned the federal government will put in place a system to observe the actual property property of LH officers and introduce strict authorized measures to punish those that use the data they acquire from work for their very own personal pursuits.
LH, which oversees and manages the nation’s social housing growth tasks, has come beneath fireplace from criticism after a number of staff had been accused of utilizing inside info to purchase land in Gwangmyeong and Shiheung, earlier than the 2 cities in Gyeonggi Province are solely designated as websites for round 70,000 new properties. .
Because the police and prosecution velocity up the investigation into the corruption scandal, related ministries will talk about LH reform plans this week.
Some critics blame the monopoly nature of the entity, arguing that the state promoter needs to be reorganized to share authority and energy with different institutes, or be abolished as a complete.
LH is the results of the merger of Korea Land Improvement Corp. and Korea Housing Corp. in 2009, as the federal government sought to remove the duplication of capabilities of the 2 state entities on the time.
On the finish of final 12 months, LH had 9,500 staff and its property had been valued at round 184 trillion gained ($ 161 billion).
One of many reform plans on the desk is to make sure that LH maintains its land-use planning obligation, which incorporates the event of latest city areas and the availability of latest housing, however entrusts the oversight function of precise tasks. to the respective regional firms.
Though the federal government is answerable for public housing plans, some additionally imagine that the state shouldn’t compete with personal firms for building.
There are additionally opinions that the LH ought to return to the state earlier than the 2009 merger, when management of land and housing was break up.
However a removing or near-removal is unlikely, observers mentioned, as the federal government just lately introduced a nationwide roadmap on Feb.4 to ascertain new city areas and supply new properties in a marketing campaign led by LH.
“The general public sector-led housing provide plan, which has to this point been led by Minister Byeon, should be accomplished, at the least till the legislative drafting stage,” President Moon Jae mentioned. in, claiming that his housing plan was nonetheless legitimate. after the scandal.
Land, Infrastructure and Transport Minister Byeon Chang-heum, who had served as LH’s chief govt from April 2019 to December 2020 simply earlier than his ministerial appointment, provided Moon his resignation on Friday.
By Jo He-rim ([email protected])