116 Disqualified Winners in Sejong City Special Housing... Ministerial Seal Forgery Detected

Board of Audit and Inspection Announces Results of Audit Requested by the National Assembly

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] Numerous cases of abuse of the "Special Housing Supply for Employees of Institutions Relocated to Sejong City," implemented by the government to provide residential convenience for employees of institutions and companies relocated to the administrative city (Sejong City), were revealed in an audit by the Board of Audit and Inspection (BAI).

The BAI announced on the 5th the results of an investigation into 25,995 winning cases of special housing supply for relocated institutions in Sejong City, conducted at the request of the National Assembly. The audit covered the Ministry of Land, Infrastructure and Transport, the Administrative City Construction Agency (Happiness Agency), Sejong City, Korea Land and Housing Corporation (LH), and the Korea Real Estate Board.

The investigation found 116 ineligible winners, including those who were not affiliated with the eligible institutions but still won, and those who won despite being within the housing re-winning restriction period. Among them, 76, accounting for two-thirds, proceeded to sign sales contracts. Ineligible winners were found across various ministries including LH, the Fair Trade Commission, the Anti-Corruption and Civil Rights Commission, the Ministry of Education, and the Ministry of Environment. Cases of forged confirmation letters issued by the ministries responsible for the special supply were also uncovered.

According to the audit report released by the BAI on the same day, 24 cases were detected where applicants received special supply apartments for relocated institutions in Sejong City despite not being affiliated with the eligible institutions as of the announcement date of the resident recruitment. Among them, 19 were transferred to institutions relocating to Sejong only after the recruitment announcement date, and 5 were employees dispatched from other institutions. The BAI pointed out, "Officials responsible for issuing confirmation letters at 12 institutions, including the Ministry of Culture, Sports and Tourism, Ministry of Employment and Labor, Fair Trade Commission, and Anti-Corruption Commission, failed to properly verify the eligibility of winners and unjustly issued confirmation letters for special supply."

Additionally, 17 heads of institutions, including the head of the Small and Medium Business Promotion Agency, issued confirmation letters to 28 people who were clearly going to lose eligibility before moving in due to retirement or other reasons. Two police officers dispatched to the Ministry of the Interior and Safety also applied for and won special supply housing despite the National Police Agency not relocating to Sejong City, thus not meeting eligibility requirements.

Cases of forged confirmation letters issued by the ministries responsible for the special supply were also revealed. An employee A from Geumsan County, who was dispatched to the Ministry of the Interior and Safety and thus ineligible for special supply, applied for and won the Sejong City special supply. A was found to have written "Ministry of the Interior and Safety B Headquarters" instead of their original affiliation, Geumsan County, in the "Affiliated Institution" field of the confirmation letter and copied and pasted the Ministry of the Interior and Safety minister's seal from elsewhere. A submitted this forged confirmation letter as contract documents and ultimately received housing supply, leading to a referral for prosecution by the BAI.

Multiple cases of duplicate winning were also detected. Twenty-two people won the Sejong relocated institution special supply more than twice. Two people who had already won newlywed special supply housing also applied for and won the relocated institution special supply. Among the total 24, seven signed apartment supply contracts because construction companies and LH failed to properly verify eligibility. Six employees, including those from the Ministry of Environment, had already won general supply housing in Sejong City but also won and signed contracts for the relocated institution special supply.

Cases were found where applicants won the Sejong special supply despite being within the re-winning restriction period due to winning other housing subscriptions. One Ministry of Land, Infrastructure and Transport employee was confirmed to have sent an official letter to the Korea Financial Telecommunications and Clearings Institute in 2010 stating, "According to Article 23 of the Housing Supply Rules, even if within the re-winning restriction period, employees of institutions relocated to the Happy City can receive special supply." The BAI criticized this, stating, "The Ministry of Land, Infrastructure and Transport arbitrarily operated the regulations."

LH announced in the resident recruitment notice that the Sejong special supply does not apply the re-winning restriction period, resulting in six people receiving the special supply within the restriction period. Among these six, four were LH employees, one was from the Anti-Corruption and Civil Rights Commission, and one was from the Ministry of Oceans and Fisheries. Since the recruitment notice stated that "the re-winning restriction period does not apply," these six were not subject to contract cancellations or other additional measures.

One construction company was found to have signed sales contracts despite being notified by the Korea Financial Telecommunications and Clearings Institute that two winners were within the re-winning restriction period.

The Sejong relocated institution special supply system was abolished in July last year. This was due to loopholes revealed when the Korea Customs Classification and Evaluation Institute was classified by the Ministry of the Interior and Safety as an institution excluded from relocation to Sejong City but still forcibly pushed for relocation. There were suspicions that the Korea Customs Classification and Evaluation Institute built an office building aiming for employee special supply apartments without intending to move in.

The BAI pointed out regarding the audit results, "When the Ministry of Land, Infrastructure and Transport and the Happiness Agency jointly enacted the 'Happy City Act' in 2005, the approval of housing construction projects was delegated to the head of the Happiness Agency, but inspection authority was not delegated." Although the Happiness Agency approved housing construction projects related to Happy City, it did not have inspection authority and thus did not scrutinize the appropriateness of the special supply, while the Ministry of Land, Infrastructure and Transport neglected inspections despite having the authority.

The BAI stated that a total of 45 illegal and improper cases were confirmed through this audit and requested disciplinary action against four individuals in related ministries. It also notified the Ministry of Land, Infrastructure and Transport to investigate whether those who unfairly received apartments violated housing supply order disruption laws and to take appropriate measures.