Jinseongjun: "The Real Architect Behind the Trillion-Won Corruption 'Daejang-dong' Has Emerged"

March 2012 'Urban Development Act' Amendment (Lee Myung-bak Administration)
September 2014 'Housing Site Development Promotion Act' Abolishment (Park Geun-hye Administration)
December 2014 'Sale Price Ceiling System' Abolishment (Park Geun-hye Administration)
2014 'Temporary Reduction System for Development Charges' Introduction (Park Geun-hye Administration)

Democratic Party lawmaker Jin Seong-jun is speaking at the National Assembly inspection regarding Gyeonggi Province, stating that the true architect of the Daejang-dong development project, riddled with corruption worth hundreds of billions of won, has emerged.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Jin Seong-jun, a member of the Democratic Party of Korea, claimed that the architect of the Seongnam Daejang-dong project, which granted private developers a bombshell of preferential treatment worth hundreds of billions of won, is not 'Gyeonggi Province Governor Lee Jae-myung' but the 'People Power Party.'

On the 20th, during the National Assembly Land, Infrastructure and Transport Committee's audit of Gyeonggi Province held at the Gyeonggi Provincial Government Office in Suwon, Rep. Jin directly stated, "People criticize Governor Lee Jae-myung for designing the Daejang-dong development project to give so much money to private developers, but the force that actually gave a bombshell of preferential treatment to grant huge profits to private developers is the People Power Party."

He then divided the basis of his claim into four points.

First, Rep. Jin said, "People ask how Hwacheon Daeyu received five plots (in Daejang-dong) and say this is Lee Jae-myung's design, but it turns out that in March 2012, under the Lee Myung-bak administration, the Urban Development Act was revised," adding, "The core of the revision was to prioritize supplying land to private developers, and even in public-private joint developments, to supply land preferentially to private developers on the same basis."

According to Rep. Jin, through this, private investors such as Hwacheon Daeyu easily acquired land in Daejang-dong through negotiated contracts and directly conducted sales projects, generating astronomical profits worth hundreds of billions of won.

He also stated, "The People Power Party abolished the Land Development Promotion Act in September 2014 under the Park Geun-hye government," adding, "If the Land Development Promotion Act had been applied, the profit rate that private developers could enjoy through development would have been limited to 6%, but with the abolition of this law, the Urban Development Act applied, allowing private developers like Hwacheon Daeyu in Daejang-dong to enjoy enormous profits."

In particular, he emphasized, "The People Power Party also revised the Housing Act in December 2014 to abolish even the price ceiling system for sales," adding, "With the removal of the price ceiling system on private land, private developers could take enormous excessive profits in development projects like Daejang-dong, and this was made possible by the People Power Party."

Finally, Rep. Jin criticized, "The People Power Party temporarily exempted the development charges, which were 20% in 2014, through a temporary exemption system (50% in the metropolitan area, 100% in local areas) for one year, and when the time was about to expire, Rep. Lee Jang-woo of the People Power Party proposed a bill to extend it for three more years, which was passed," adding, "In the end, the People Power Party allowed only 10% of the development charges in Daejang-dong to be recovered."