Illegal Expansion of Yongsan Residence and Special Privileges on Yangpyeong Expressway... Tarnished by 'Kim Geon-hee' [2024 National Audit]

National Assembly Audit of the Ministry of Land, Infrastructure and Transport Held on the 7th
Opposition Focuses Attack on Yongsan Presidential Residence and Yangpyeong Expressway Favoritism Allegations
Housing and Transportation Policies Relatively Overlooked

[Image source=Yonhap News]

The National Assembly Land, Infrastructure and Transport Committee's audit of the Ministry of Land, Infrastructure and Transport held on the 7th was overshadowed by the 'Kim Geon-hee controversy.' The audit, which began at 10 a.m., focused intensively on allegations related to First Lady Kim, including suspicions of illegal extension of the Yongsan Presidential Office residence and preferential treatment in changing the terminus of the Seoul-Yangpyeong Expressway, and concluded close to midnight.

During the audit held at the Government Complex Sejong that day, Democratic Party lawmakers bombarded the Minister of Land, Infrastructure and Transport and witnesses present with questions regarding the First Lady Kim's allegations. However, as a result, housing and transportation-related policies were inevitably pushed to the background.

Audit Witness on Illegal Extension of Residence: "I Don't Know"

A tug-of-war took place between opposition lawmakers and former Deputy Minister of Land, Infrastructure and Transport Kim Oh-jin, who appeared as a witness, regarding the illegal extension of the Yongsan Presidential Office residence. Former Deputy Minister Kim oversaw the residence construction as the Presidential Office Management Secretary during the office's relocation. The core of the suspicion is that 21gram, an interior company without a general construction license, won the presidential residence construction contract through connections with First Lady Kim Geon-hee.

When Jinbo Party lawmaker Yoon Jong-oh asked, "Do you still not remember who recommended 21gram as you answered in the Board of Audit and Inspection investigation?" Kim replied, "I regret that I cannot say because I do not remember," but also stated, "There is no fact that First Lady Kim recommended them." Democratic Party lawmaker Yoon Jong-gun retorted to Kim, "If you don't remember, how can you assert that it was not First Lady Kim?"

Former Deputy Minister Kim said, "I received recommendations for the residence construction company through various channels and people, so I cannot remember each one," adding, "Since it was the early days of the transition committee, the task force had many duties, and relocating the office was a higher priority, so the residence was important but secondary."

Regarding whether he reported the residence extension construction to First Lady Kim, Kim consistently responded to opposition lawmakers' questions with "I cannot say whether I reported or not," maintaining a stance of ignorance.

[Image source=Yonhap News]

Lawmaker Yoon Jong-gun said, "Only general construction companies authorized to perform extension and reconstruction work can undertake residence construction, but according to the Board of Audit and Inspection, a specialized construction company not authorized for extension and reconstruction won the contract." He continued, "According to the audit report, 20 issues were found, and my office additionally found five more. Among these, 10 violations, including the Construction Industry Act and the Framework Act on the Construction Industry, fall under the Ministry of Land, Infrastructure and Transport's jurisdiction." Democratic Party lawmaker Ahn Tae-joon also said, "The Construction Industry Act is under the jurisdiction of the Land, Infrastructure and Transport Committee, and its enforcement is handled by the Ministry of Land, Infrastructure and Transport."

In response, Minister Park Sang-woo said, "While we did not carry out individual acts, overall market and construction industry transparency improvement through system reforms is under the Ministry's jurisdiction," adding, "However, since the Board of Audit and Inspection has thoroughly audited, I think there is no need for a separate audit by the Ministry."

The Land, Infrastructure and Transport Committee selected Kim Tae-young, CEO of 21gram, and Hwang Yoon-bo, CEO of Wondam General Construction, who participated in the construction through 21gram, as witnesses for the audit that day, but they did not appear. Democratic Party lawmaker Moon Jin-seok said, "If they do not appear on the 24th when the comprehensive audit of the Ministry is held, we will consider punishment under the law for contempt of the National Assembly along with a summons," adding, "If they think 'we can just avoid this time and wait out the storm,' they should give up."

Opposition: "Yangpyeong Expressway, Preferential Treatment for First Lady" vs Ministry: "Presidential In-Law's Land Not Subject to Compensation"

The suspicion of preferential treatment in changing the terminus of the Seoul-Yangpyeong Expressway was also raised for the second consecutive year. This controversy began last July when the Democratic Party alleged that the Ministry of Land, Infrastructure and Transport was pushing to change the expressway terminus to Gangsaeng-myeon, Yangpyeong County, near land owned by First Lady Kim Geon-hee's family, instead of the original plan of Yangseo-myeon. Currently, construction of the expressway is halted.

Democratic Party lawmaker Bok Ki-wang said, "The core of the public suspicion is whether external pressure was involved in changing the Yangpyeong Expressway terminus toward the area where 29 plots of land owned by First Lady Kim's family are located," adding, "The suspicion has not been resolved even after a year."

Lawmaker Bok stated, "With the opening of the 'Hwado-Joan' section of the Metropolitan Area 2nd Ring Expressway in February, traffic volume at Dumulmeori in Yangseo-myeon has greatly increased, strengthening the justification for the original Yangseo-myeon terminus plan." He added, "The changed Gangsaeng-myeon terminus plan has been criticized for not helping to alleviate congestion near Dumulmeori and on National Route 6 leading to Dumulmeori, which is the original purpose of the Yangpyeong Expressway." Based on this, he emphasized, "The traffic demand for the original Yangseo-myeon plan was underestimated, and a cost-benefit analysis should be redone."

[Image source=Yonhap News]

Democratic Party lawmaker Lee So-young pointed out, "The ramp part of the Gangsaeng-myeon terminus, located 1.8 km above Namyangpyeong IC, exactly overlaps with the hillside land owned by the presidential in-laws," adding, "It connects precisely to the presidential in-laws' land as if drawn with a ruler." Lee said, "At the time the preferential treatment allegations surfaced last July, the president's mother-in-law and brother-in-law were raising black goats and turkeys on the hillside land," adding, "If livestock are raised on land to be compensated, additional compensation is received."

However, Minister Park explained, "After a detailed review by the Ministry of Land, Infrastructure and Transport, the Gangsaeng-myeon terminus and the presidential in-laws' land do not overlap," and "(The presidential in-laws' land) is not subject to compensation." He said, "Based on over 30 years of experience at the Ministry, road routes would not be changed overnight due to the interests of a specific individual. There is no objective evidence such as recordings," adding, "I think this misunderstanding arose purely from a rational route decision process, an 'obii-rak' coincidence."

In response to Democratic Party lawmaker Min Hong-chul's question about the future plans for the Yangpyeong Expressway, Minister Park said, "We are in a position to resume construction promptly," and "I hope a third party quickly verifies either the original or alternative plan."

Minister of Land, Infrastructure and Transport: "Housing Price Stability" and "Reform of Unranked Subscription System"

Policy questions were raised mainly by some ruling party lawmakers from the People Power Party. When People Power Party lawmaker Yoon Young-seok pointed out the recent trend of rising housing prices, Minister Park said, "Looking nationwide, housing prices have stabilized considerably, and in many regions, prices are even falling," predicting, "(Future housing prices) will maintain a stable trend nationwide."

People Power Party lawmaker Eom Tae-young asked, "Are you preparing measures to improve the controversies over 'lottery subscriptions' and 'jupjup'?" The unranked subscription system mentioned by lawmaker Eom is a system that reopens applications for leftover units from under-subscription or contract cancellations in the first and second priority subscription rounds. Tens of thousands to millions of applicants flocked, causing the Korea Real Estate Board's subscription website to crash.

Minister Park responded, "We have prepared several alternatives considering factors such as non-homeownership, residence, and whether the subscription area is overheated, and are reviewing them."

People Power Party lawmaker Kim Eun-hye raised the issue of delays in the main subscription for pre-subscribers of apartments built by the Korea Land and Housing Corporation (LH), including the Gunpo Daeyami Newlywed Hope Town. Minister Park replied, "We will consider alternatives from the winners' perspective."

"Minister's Official Vehicle Listed on Danggeun Market" Controversy

[Image source=Yonhap News]

At the audit venue that day, a clash between ruling and opposition parties occurred over a listing on 'Danggeun Market.' Lawmaker Yoon Jong-gun revealed that he had "registered Minister Park's official vehicle, a Carnival, on Danggeun Market for 50 million won" to emphasize the serious problem of false used car listings on the platform, even presenting related photos.

Lawmaker Yoon said, "It took less than a minute to post a false listing for Minister Park's vehicle once the license plate and owner were known." Minister Park responded, "Did you get my consent before doing that?" People Power Party lawmaker Kwon Young-jin also pointed out, "Posting without consent violates the Information and Communications Network Act, and a lawmaker posted a false listing."

In response, Lawmaker Yoon countered, "Are the minister's official vehicle's license plate and name state secrets?" However, People Power Party lawmaker Jeong Jeom-sik rebutted, "Posting with the vehicle number and owner as the minister itself is a crime." This dispute continued into the afternoon audit session, and due to loud exchanges between lawmakers from both sides, the audit was suspended for 10 minutes.