Hong Nam-ki "Apologies to the Public... Unjust Gains Will Definitely Be Recovered" (Update)

7th 'Real Estate Related Ministers' Meeting'
Strengthening Internal Management and Supervision with Real Estate Registration System... "Unfair Gains Will Definitely Be Recovered"

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, said on the 7th regarding the speculation allegations involving Korea Land and Housing Corporation (LH), "As the minister responsible for the economy and comprehensive management of public institutions, I sincerely apologize to the public."

On the same day, Hong attended the real estate-related ministers' meeting held at the Seoul Government Complex and stated, "It is a devastating feeling that an unfortunate incident occurred at a public institution that is supposed to be the fairest and most stringent in executing real estate policies on the ground." He announced plans to pursue ▲non-tolerance measures such as investigation requests and disciplinary actions ▲consideration of introducing a real estate registration system ▲strengthening overall institutional management responsibility.

Hong said, "If real estate speculation is confirmed, we will take non-tolerance measures such as investigation requests and disciplinary actions," and added, "As part of strengthening internal controls, we will also consider introducing a system such as a real estate registration system that allows for continuous monitoring."

He also reiterated the policy to recover any unjustly obtained profits. Hong stated, "We will ensure that unjustly obtained gains are fully recovered so that such attempts can never take root again," and added, "We will operate the public institution management evaluation system more strictly."

The previously announced February 4th supply plan will proceed as scheduled. He explained, "In March, we plan to disclose the selected candidate sites for the February 4th supply plan, which were chosen through consultations with the private sector and local governments, as well as the second phase public redevelopment candidate sites under the August 4th plan." He further explained, "In April, we will announce the locations for the second phase of new public housing sites and will make thorough preparations to prevent any speculation concerns."

The government plans to root out the four major market-disturbing acts based on illegality, loopholes, and unfairness. Hong said, "In addition to recovering unjust profits, we will consult to ensure that more than the gains obtained from criminal acts are recovered by referring to penalties for unfair acts under the Capital Markets Act," and added, "We will ensure that illegal actors are removed from the market to the maximum extent."

He also added, "We plan to restrict employment in related institutions to some extent in accordance with the Act on the Aggravated Punishment of Specific Economic Crimes and limit the acquisition of permits and licenses in real estate-related industries to prevent them from gaining a foothold in the real estate market."

Meanwhile, the government has decided to investigate sources of funds, tax evasion, and compliance with loan regulations if speculation is confirmed in relation to the 3rd phase new towns.