A panoramic photo of the Korea Rail Network Authority building (right) and Korea Railroad Corporation building (left) located in Dong-gu, Daejeon. Provided by the Korea Rail Network Authority.
[Asia Economy (Daejeon) Reporter Jeong Il-woong] A controversy has ignited over land owned by Kim Sang-gyun, the director of the Korea Rail Network Authority. The debate was sparked by the increase in the property value of the land near the newly planned (subway) station project, which is owned by Director Kim, a public official.
According to Cheon Jun-ho, a member of the National Assembly’s Land, Infrastructure and Transport Committee from the Democratic Party of Korea, Director Kim owns real estate within 1 km of the planned Hyangdong Station, scheduled to open in 2023. Hyangdong Station is set to be located between Susaek Station and Hwajeon Station on the Gyeongui-Jungang Line, and it is reported that Director Kim acquired nearby real estate through inheritance in the past.
Moreover, as the establishment of Hyangdong Station approached, nearby real estate prices fluctuated, and it is true that the property value of the land owned by Director Kim also increased.
Regarding this, Representative Cheon pointed out that Director Kim, despite being a public official (director of the Rail Network Authority), did not voluntarily report the potential conflict of interest related to the establishment of Hyangdong Station.
In particular, since the Rail Network Authority is a public institution involved in the construction and management of railway facilities and has been in discussions with the Ministry of Land, Infrastructure and Transport and Goyang City from the early stages of reviewing the establishment of Hyangdong Station, Representative Cheon argued that Director Kim should have reported his private interests to the code of conduct officer himself.
On the other hand, the Rail Network Authority presented a different stance through a clarification statement. The core of their argument is that the Authority does not have decision-making power over the establishment of Hyangdong Station, and Director Kim’s case is not subject to mandatory reporting.
The Rail Network Authority explained, “(According to legal advice) the station establishment project is ultimately decided by the Ministry of Land, Infrastructure and Transport, and under the Public Officials Ethics Act, it does not fall under conflict of interest regulations. Therefore, Director Kim is not subject to reporting under Article 6, Paragraph 1 of the Rail Network Authority’s Code of Conduct for Employees.”
Above all, they emphasized that “the Hyangdong Station establishment project was initiated by Goyang City to promote the development of the Hyangdong district and improve user convenience by conducting an economic feasibility study on the station location, and the Ministry of Land, Infrastructure and Transport was requested to approve it in accordance with the Act on the Construction and Maintenance of Railways and Railway Facilities.”
Regarding Representative Cheon’s claim that the price of Director Kim’s real estate near Hyangdong Station increased by about 1.4 billion KRW over two years, the Rail Network Authority stated, “Based on the property registration as of December 31, 2019, Director Kim’s property increased by 747 million KRW compared to the previous year, of which 540 million KRW was due to real estate near Hyangdong Station. Therefore, the claim that the property value increased by 1.4 billion KRW over the past two years is not accurate.”
Meanwhile, Representative Cheon also hinted at plans to improve the system by pointing out loopholes in the ‘private interest reporting system’ designed to prevent conflicts of interest among public officials, using Director Kim’s case as an example.
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