Choo Mi-ae: "The Increasing Number of People Feeling 'Becoming Poorer' Is Due to Real Estate Speculation"

Targeting the LH Scandal: "Some Public Officials Exhibit Moral Insensitivity"
"The 'Rent-Seeking Trap' Deepens Polarization"
Calls for Enactment of the 'Crime Proceeds Recovery and Insider Trading Enhanced Punishment Act'

Former Minister of Justice Choo Mi-ae / Photo by Yonhap News

[Asia Economy Reporter Lim Ju-hyung] Former Minister of Justice Chu Mi-ae recently pointed out regarding the allegations of land speculation by some employees of Korea Land and Housing Corporation (LH) in new towns, saying, "The increasing number of people who feel 'I am becoming poorer' is ultimately due to real estate speculation."

In a post on her Facebook on the 8th, former Minister Chu said, "A special law should be enacted to recover profits from real estate-related crimes and to impose heavier penalties on insider trading."

She continued, "If information about land development plans is leaked and used for transactions or allowed to be used by others, profits up to five times the amount should be recovered."

Former Minister Chu stated, "In cases where the use of land such as housing sites is promoted, if nominee ownership or nominee transactions of land are detected, or if a person without qualifications to acquire farmland fabricates false farmland acquisition qualification certificates in violation of the Farmland Act, the entire land value should be confiscated," adding, "In a situation where society as a whole is trapped in the 'rent-seeking trap,' deepening inequality and polarization, the rent-seeking behavior carried out by some public officials with moral insensitivity should be seen as the background of this LH incident."

She further emphasized, "The fact that the main developers of public development and LH executives and employees engaged in speculative purchases in planned housing development sites caused great shock and disappointment to the public," and added, "Land development suspected or expected to involve speculation in other new towns should be temporarily suspended and a full-scale investigation should be launched."

On the 4th, saplings were planted on land near the recycling facility in Gwarim-dong, Siheung-si, Gyeonggi-do, where allegations of speculation by LH employees were raised. / Photo by Yonhap News

She also urged, "The National Assembly should hasten the enactment of the 'Special Act on Recovery of Profits from Real Estate-Related Crimes and Heavier Punishment for Insider Trading' to fundamentally block land speculation," calling for swift legislation.

Earlier, on the 2nd, the allegations surfaced following revelations by the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun). It is claimed that about ten current and former LH employees and their families took out loans totaling approximately 5.8 billion KRW to pre-purchase land worth 10 billion KRW in the relevant district before the new town announcement.

The next day (3rd), President Moon Jae-in ordered a thorough investigation of land transactions involving employees and their families working in departments related to new housing development at the Ministry of Land, Infrastructure and Transport, LH, and related public institutions, not only for Gwangmyeong and Siheung but for all 3rd phase new towns.

Blue House spokesperson Kang Min-seok stated at a briefing in the Chuncheon Press Center that day, "President Moon Jae-in gave three instructions to the government regarding the speculation allegations in the Gwangmyeong and Siheung new towns."

It was also reported that President Moon instructed that the full investigation be led by the Prime Minister's Office, with sufficient personnel deployed jointly with the Ministry of Land, Infrastructure and Transport to conduct a thorough investigation leaving no suspicion.

Subsequently, on the 4th, a government joint investigation team centered on the Prime Minister's Office was formed and began the investigation.