LH, SH, GH All Employees Subject to 'Public Officials Property Registration'

Amendment to Enforcement Decree of Public Officials Ethics Act Approved at Cabinet Meeting... Public Officials Related to Real Estate Required to Record Acquisition Details

[Asia Economy Reporter Ryu Jeong-min] All employees of local public corporations related to real estate development, such as Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH), will be subject to the 'Public Officials Property Registration.' Public officials handling real estate-related tasks or information must obligatorily record the acquisition process of real estate and sources of income.

The Ministry of Personnel Management announced on the 14th that the amendment to the 'Enforcement Decree of the Public Officials Ethics Act,' based on these contents, was approved at the Cabinet meeting. The Enforcement Decree of the Public Officials Ethics Act will be enforced along with the official gazette announcement on October 2. Public-related organizations subject to property registration obligations will also be announced in the official gazette.

The Ministry of Personnel Management explained, "In particular, all employees of local public corporations whose main function is real estate development, such as LH, SH, Gyeonggi Housing and Communities Corporation (GH), and Saemangeum Development Corporation, must register their property."

[Image source=Yonhap News]

Public officials in departments responsible for real estate-related development, regulation, or those handling related information for research and investigation are also included as persons obligated to register property. When such public officials register their property, they must obligatorily record the acquisition process of the relevant real estate and sources of income. Previously, only public officials of grade 1 or higher were required to disclose the formation process of real estate, but this has now been expanded.

It is also noteworthy that public officials in charge of real estate tasks are, in principle, restricted from newly acquiring real estate related to their duties. The Ministry of Personnel Management explained, "Each institution will establish restriction measures suitable for their characteristics, considering their jurisdiction and responsibilities, and will preemptively restrict the acquisition of real estate that may involve the use of internal information."

However, exceptions have been made to allow the acquisition of residential real estate necessary for daily life due to reasons such as work, schooling, or marriage.

For LH, the scope of employment restrictions after retirement will be expanded from current executives to grade 2 or higher for three years after retirement. This aims to eradicate the practice of preferential treatment for former officials. The number of people subject to employment restrictions will increase from the current 7 to about 520. Kim Woo-ho, head of the Ministry of Personnel Management, said, "It is expected to more effectively prevent unfair property accumulation using job-related information." Reporter Ryu Jeong-min jmryu@