[Comprehensive] "Seems Not Like Land Bought with Prior Knowledge," Byun Chang-heum's Remarks... Opposition Reacts, "Already Drawing Conclusions from Investigation"

Minister Byun, in MBC Interview: "Wasn't It Suddenly Designated as a New Town?"
"Government's Self-Investigation Intent Revealed," "Accept the Truth Investigation," Opposition Reacts

Minister of Land, Infrastructure and Transport Byeon Chang-heum is leaving the meeting room on the 5th at the National Assembly in Yeouido, Seoul, after meeting with Lee Nak-yeon, leader of the Democratic Party of Korea, Jin Sun-mi, chairperson of the Land, Infrastructure and Transport Committee, and others regarding allegations of land speculation by employees of Korea Land and Housing Corporation (LH) in the Gwangmyeong and Siheung new towns. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] The People Power Party has called for the immediate resignation of Byeon Changheum, Minister of Land, Infrastructure and Transport and former president of Korea Land and Housing Corporation (LH), regarding allegations of speculation involving current and former LH employees and their families in the 3rd New Town development. Previously, Minister Byeon made remarks suggesting, "It’s not that LH employees speculated knowing development information, but rather that they bought land and it was suddenly designated as a new town," which sparked criticism.

On the 4th, in an interview with MBC, Minister Byeon said about the LH employees accused of speculation, "It doesn’t seem like they bought land in advance knowing insider information," and added, "They thought the new town development wouldn’t happen, but suddenly it was designated as a new town."

According to MBC, Minister Byeon also stated, "Buying land in a new town that will be fully expropriated is foolish," and "Since expropriation is purchased at the appraised value, there is no merit." He also said, "It’s not that LH employees had prior knowledge of development information, nor would they benefit."

As these remarks by Minister Byeon became known, opposition parties raised strong criticism. They pointed out that the former LH president’s comments could be interpreted as defending the employees’ speculation allegations.

Members of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party are demanding the attendance of Minister of Land, Infrastructure and Transport Byeon Chang-heum and Acting President Jang Chung-mo of Korea Land and Housing Corporation (LH) at the Land, Infrastructure and Transport Committee meeting room on the 5th. / Photo by Yonhap News

Kim Eunhye, spokesperson for the People Power Party, issued a statement on the 5th saying, "Minister Byeon Changheum is defending LH employees by saying they probably did not buy land knowing development information," and criticized, "He is already drawing conclusions before the investigation has even properly started."

She continued, "'There was no intention to speculate,' 'A new town just happened to be designated on my land'?this government’s self-investigation reveals its true intent," and added, "This government, which claims it will root out corruption, did not fail to show courtesy by pre-excluding Seoul city officials ahead of the by-elections, the Blue House, and members of the National Assembly’s Land, Infrastructure and Transport Committee."

She further stated, "The blind investigation avoiding the Board of Audit and Inspection and the prosecution out of fear that the government’s speculation will be exposed betrays and disappoints the people," and emphasized, "If the Moon Jae-in administration truly intends to leave no suspicion, it should request investigations by the prosecution and the Board of Audit and Inspection."

Members of the People Power Party belonging to the National Assembly’s Land, Infrastructure and Transport Committee also issued a statement that day, saying, "Minister Byeon cannot escape responsibility for this incident that occurred during his tenure as LH president," and called for his immediate resignation.

Minister of Land, Infrastructure and Transport Byeon Chang-heum is leaving the party leader's office after meeting with Lee Nak-yeon, leader of the Democratic Party, at the National Assembly in Yeouido, Seoul on the 5th. / Photo by Yonhap News

They also emphasized, "The Democratic Party is refusing the National Assembly’s Land, Infrastructure and Transport Committee’s urgent inquiry into Minister Byeon and demands the immediate acceptance of a parliamentary fact-finding investigation and a national audit."

Amid growing controversy over Minister Byeon’s remarks, criticism also came from the ruling party leadership that day.

Democratic Party leader Lee Nakyeon summoned Minister Byeon and Acting LH President Jang Chungmo to the National Assembly, received a report on the circumstances of the new town speculation allegations and follow-up measures, and told reporters, "I said they should take responsibility to the extent of volunteering for investigation first," and added, "It is absolutely unacceptable to defend the organization, and they must sensitively accept the public’s anger and disappointment," reprimanding them.

Leader Lee added, "I spoke very harshly about the attitude of the Ministry of Land, Infrastructure and Transport and LH."