Board of Audit and Inspection Reviews Operation and Management of Agricultural Corporations in Gyeonggi... "Agricultural Corporations Exploit Government Support Policies for Real Estate Speculation"
[Asia Economy Reporter Ryu Jeong-min] An audit report from the Board of Audit and Inspection revealed that agricultural corporations in the Gyeonggi region with no sales from farming activities generated sales of 148.8 billion KRW solely through real estate trading.
On the 24th, the Board of Audit and Inspection announced the results of an audit on the "Operation and Management Status of Agricultural Corporations in the Gyeonggi Region." The audit was conducted to verify the actual situation as cases of agricultural corporations abusing government support policies, such as real estate speculation, contrary to establishment requirements, have been occurring.
The Board stated, "As a result of inspecting 45 agricultural corporations located in Gyeonggi Province, 11 corporations located in 7 cities and counties including Pyeongtaek-si generated sales of approximately 148.8 billion KRW solely from real estate trading over three years (2017?2019) without any sales from farming activities."
The Board pointed out, "These 11 corporations falsely prepared agricultural management plans as if they were going to engage in farming, obtained qualification certificates from 4 cities including Pyeongtaek-si, acquired a total of 268 parcels of farmland, and then sold them without any farming activities, earning a profit of about 70.1 billion KRW. Furthermore, 3 cities including Pyeongtaek-si issued 131 qualification certificates without investigating whether the business purpose and farmland acquisition were intended for real estate trading."
Four agricultural corporations resold 82 parcels of farmland acquired for farming purposes, making a trading profit of approximately 37.3 billion KRW.
The Board of Audit and Inspection stated, "We have notified the 7 mayors and county heads to prepare measures such as filing dissolution requests for the 11 agricultural corporations with the competent courts."
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