Another Bowed Head, Byeon Chang-heum: "Extremely Devastated as Former LH Chief"

Punish with a Zero-Tolerance Policy and Establish Recurrence Prevention Measures
Unjust Gains Will Be Recovered with Multiple Penalties

Minister of Land, Infrastructure and Transport Byeon Chang-heum (second from left) and Jang Chung-mo, Acting President of Korea Land and Housing Corporation (LH) (right), along with other attendees, are bowing their heads in apology regarding the LH employee speculation allegations at the Land, Infrastructure and Transport Committee plenary meeting held on the afternoon of the 9th at the National Assembly in Yeouido, Seoul. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Byun Chang-heum, Minister of Land, Infrastructure and Transport and former president of Korea Land and Housing Corporation (LH), recently apologized, saying he was "truly heartbroken and sorry" regarding the speculation allegations by LH employees in the Gwangmyeong-Siheung new town.

At the emergency briefing of the National Assembly Land, Infrastructure and Transport Committee on the 9th, Minister Byun said in his closing remarks, "I stand here with a heavier heart than ever before," adding, "As speculation allegations by LH executives and employees regarding the location of the Gwangmyeong-Siheung new town have surfaced, I feel deeply devastated as the minister in charge and former head of LH."

Minister Byun stated, "I regard this incident as a very serious matter that affects public trust, and to restore the trust of the people, we will investigate the speculation allegations more strictly than ever before," emphasizing, "Those involved in speculative acts will be punished under a zero-tolerance principle, and fundamental measures to prevent recurrence will be promptly prepared."

He also said he would actively cooperate with the police investigation into the speculation allegations involving public officials. He said, "The National Police Agency’s Criminal Investigation Headquarters has also launched an investigation, and the President has emphasized the prompt investigation by the Criminal Investigation Headquarters," adding, "The Ministry of Land, Infrastructure and Transport will actively cooperate to ensure that the speculation allegations are clearly revealed."

The Ministry of Land, Infrastructure and Transport plans to punish employees found guilty of speculation without leniency through investigations and prepare recurrence prevention measures to ensure such incidents do not happen again.

Minister Byun said, "Employees of real estate-related institutions will, in principle, be restricted from land transactions within a certain scope, and in unavoidable cases, they will be required to report such transactions," adding, "For employees of real estate development information management institutions, a system will be introduced to impose asset registration obligations to enable continuous monitoring."

In particular, Minister Byun explained that a system will be established to recover unfair profits obtained through speculation by public officials and others by multiplying the amount several times.

Minister Byun said, "We must not allow this incident to lead to distrust of the entire public sector and push the real estate market back into an unstable situation," emphasizing, "We will steadily implement follow-up measures for supply policies such as the March candidate site announcement to produce tangible results that the public can feel and secure market trust in expanding housing supply."