"No illegal acts, but re-verification to prevent controversy"
Korea Land and Housing Corporation (LH) announced on the 25th that it has requested an investigation regarding three land parcels following an internal investigation into real estate transactions by its executives and employees. Although no illegal activities were found in the three parcels, the investigation request was made as part of a re-verification effort to completely prevent future controversies.
LH, which faced controversy last year due to speculative land transactions by its executives and employees, operates a registration system requiring annual reporting of real estate holdings and transactions by its staff. All assets, including real estate and financial assets owned by executives and employees, are registered annually in the government’s public service ethics system. Measures such as mandatory reporting of real estate acquisitions within project districts and penalties including fines and disciplinary actions for violations have also been established.
The internal investigation of real estate transactions targeted properties owned by executives and employees within newly designated or compensation-initiated development project districts. The investigation results were verified through a Compliance Oversight Committee composed of external experts, including civic groups, lawyers, and professors.
From last year until the end of October, investigations were completed for a total of 107 project districts. After an initial review for speculative transactions and illegal activities, a secondary verification was conducted by the Compliance Oversight Committee, which included external participants. As a result, no illegal acts such as insider information use were found, but it was decided to request an investigation for three parcels deemed to require additional scrutiny to prevent any potential controversies.
LH plans to continue investigations on districts that have not yet been examined, prioritizing them accordingly in the future.
Kim Kyung-dong, LH Compliance Officer, stated, "We will continue to strengthen the effectiveness of investigations through system improvements and do our best in preventive work as well."
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