Kyungsilryeon "10% Public Recovery of Daejang-dong Development Profits... Kim Man-bae and 7 Others Pocket 850 Billion Won"

[Asia Economy Reporter Kim Min-young] The Citizens' Coalition for Economic Justice (CCEJ) claimed on the 19th that the public only recovered 10% of the profits from the Daejang-dong development project.

At a press conference held that day, CCEJ pointed out, "The amount recovered by the public from the profits gained through the Daejang-dong development is only 10%," adding, "Private developers such as Hwacheon Daeyu took about 1.6 trillion won in profits."

CCEJ analyzed the Daejang-dong land sale amount, housing sales revenue, and estimated the cost of land development and apartment sales based on the 'Apartment and Multi-family Housing Sales Status' and 'Supply Price Status by Land Type' data submitted by the Ministry of Land, Infrastructure and Transport to the office of Justice Party lawmaker Sim Sang-jung, to calculate the development profits.

Accordingly, the total profit from the Daejang-dong development project calculated by CCEJ was 1.8211 trillion won. By category, land sale profit was the largest at 724.3 billion won, and the amount from selling 143,160 pyeong of Daejang-dong land was 2.2243 trillion won (15.53 million won per pyeong). This was calculated after excluding the development project cost of 1.5 trillion won announced by the Democratic Party presidential candidate Lee Jae-myung's campaign.

The sales revenue from the 13 blocks of Daejang-dong multi-family housing sites (4,340 households) was estimated at a total of 3.94 trillion won. The sales revenue per housing unit was about 910 million won, which differed from the estimated cost per unit of 660 million won calculated considering land sale price and appropriate construction costs. This resulted in a sales profit of about 250 million won per housing unit, totaling 1.0968 trillion won for all 13 blocks.

CCEJ stated, "The sales revenue of Hwacheon Daeyu Asset Management, which sold five housing blocks, is estimated at 453.1 billion won," adding, "Including dividends of 404 billion won received from land sales, the seven people related to Hwacheon Daeyu and Cheonhwa Dongin gained 850 billion won in profits from the Daejang-dong project, with 650 billion won going to Kim Man-bae and his family."

They continued, "Except for the 183 billion won recovered by Seongnam City from the project profits, the rest was taken by Hwacheon Daeyu and other private developers," pointing out, "Only 10% of the development profits were recovered by the public, while private developers received 90% of the development profits, amounting to 1.6 trillion won in unfair gains."

CCEJ urged, "The Kim Man-bae family (Hwacheon Daeyu and Cheonhwa Dongin 1 to 3) earned 3,800 times their investment, and the four owners of Cheonhwa Dongin 4 to 7 also took 205.4 billion won, gaining 1,100 times their investment in unfair profits," and called for a special investigation to reveal who led the project design that funneled thousands of billions to specific individuals.