LH Executives and Employees Neglect Asset Reporting...542 Violations Detected Over Three Years

LH Accounts for 75.2% of All Cases Among the Ministry and Its Affiliates
Four Years Ago: Land Speculation Allegations Led to Investigation of 48 Employees

It has been revealed that employees and executives of the Korea Land and Housing Corporation (LH), who caused public outrage four years ago due to allegations of land speculation, have recently neglected their obligation to report their assets.

According to data submitted by the Ministry of Land, Infrastructure and Transport to Assemblywoman Lee Yeonhee of the Democratic Party of Korea, a member of the National Assembly's Land, Infrastructure and Transport Committee, as of October 9, LH received a total of 542 warnings, corrective actions, fines, and disciplinary requests from the Ministry of Personnel Management over the past three years, from 2022 to last year, following asset registration reviews.

During the same period, the Ministry of Land, Infrastructure and Transport recorded 101 cases, while other public institutions affiliated with the ministry recorded 78 cases. Out of a total of 721 cases across the ministry and its affiliated agencies, LH accounted for the majority with 75.2%.

Following the 2021 allegations of land speculation in new towns by LH employees, the government expanded the obligation for asset registration and reporting to all officials involved in real estate policy and executives and employees of public institutions. As a result, all officials at the headquarters of the Ministry of Land, Infrastructure and Transport, executives and employees of LH and Saemangeum Development Corporation, executives at level 2 or above at the National Railroad Corporation, and executives of public institutions are required to report their assets once a year.

Korea Land and Housing Corporation Headquarters. LH

However, in 2022, the first year of the system's implementation, LH was found to have the highest number of reporting errors among the ministry and its affiliated agencies, with 123 cases detected by the Ministry of Personnel Management. Of these, 115 resulted in warnings or corrective actions, and 8 resulted in fines. In 2023, the number of reported errors nearly doubled to 232 cases, including 187 warnings or corrective actions, 39 fines, and 6 disciplinary requests.

Last year, 187 cases of asset reporting errors were also confirmed. Among these, 151 resulted in warnings or corrective actions, 24 in fines, and 12 in disciplinary requests. Notably, over the past three years, all 18 cases of the most severe disciplinary requests from the Ministry of Personnel Management among the ministry and its affiliated agencies were related to LH.

Assemblywoman Lee pointed out, "Since public scrutiny of officials' real estate ethics has intensified following the LH new town land speculation incident, there is a need for institutional improvements to ensure thorough compliance with asset registration from the outset."

Meanwhile, in March 2021, a total of 48 LH employees and executives were investigated on suspicion of using undisclosed information to speculate on land in third-phase new towns such as Gwangmyeong and Siheung in Gyeonggi Province. As of last month, among the 35 individuals whose investigations or trials have concluded, 24 were either cleared of charges or found not guilty. Of the 11 who were convicted, 7 were fined and 4 were sentenced to imprisonment.