Government Declares War on Real Estate Speculation... Comprehensive Investigation of Land-Backed Loans to Be Conducted

Discussion on 'LH-related Laws' Including the Public Officials Ethics Act and the Special Act on Public Housing
2·4 Supply Plan to Proceed Without Delay

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is attending the meeting to review COVID-19 vaccines and treatments held on the 12th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Sehee] The government has declared a war on real estate crimes in connection with land speculation allegations involving employees of Korea Land and Housing Corporation (LH). It is also expected to introduce regulatory measures on land-secured loans from secondary financial institutions such as regional agricultural cooperatives within this month.

On the 14th, a government official stated, "We plan to establish measures to curb loans intended for speculation." While commercial banks do not handle farmland-secured loans extensively, regional agricultural cooperatives relatively easily provide loans to farmers using rice paddies and fields as collateral.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, also said, "The LH speculation case was possible because large-scale loans were made at specific branches of banks," adding, "It is necessary to review points for improvement."

The government intends to accelerate discussions on amendments to real estate-related laws to prevent speculation, strengthen penalties, and implement measures to prevent recurrence. Currently, the National Assembly is discussing laws related to LH, including the Conflict of Interest Prevention Act, Public Officials Ethics Act, Special Act on Public Housing, Land and Housing Corporation Act, and Real Estate Transaction Act.

The February 4 housing supply plan will proceed as scheduled. Deputy Prime Minister Hong added, "Real estate policies, including the February 4 housing supply plan, will be carried out without disruption according to the announced plans and proposed schedules."