Seoul City Launches Audit of SH Over Alleged Pressure by Council Members Including Kim Kyung on Purchase-and-Rent Housing

On the 12th, at a press conference held at the auditorium of the Citizens' Coalition for Economic Justice in Jongno-gu, Seoul, on the findings of an analysis into allegations that the Seoul Metropolitan Council exerted external pressure on the Seoul Housing and Communities Corporation's acquisition of purchase-rental housing, attendees held placards and shouted slogans. Yonhap News

The Seoul Metropolitan Government Audit Committee announced on the 13th that it plans to conduct an audit of Seoul Housing Corporation (SH) regarding the criteria for purchasing units for purchase-and-rent housing and the selection process.

Previously, the Citizens' Coalition for Economic Justice (CCEJ) raised allegations that former Seoul Metropolitan Council member Kim Kyung pressured Seoul Housing Corporation (SH) to increase the volume of housing purchases while in office and earned 8.5 billion won by selling housing owned by his family’s company.

The Citizens' Coalition for Economic Justice stated that the purchase prices paid by SH for two officetel buildings in Cheonho-dong sold by the former council member’s family company were 14.7 billion won and 13.3 billion won, respectively, and estimated the family company’s development profit at 8.5 billion won after deducting the land acquisition cost, construction cost, and total construction expenses.

The Citizens' Coalition for Economic Justice also revealed that, in addition to former council member Kim Kyung, numerous 11th-term Seoul Metropolitan Council members had called for raising SH’s purchase prices for purchase-and-rent housing and urged SH to buy more housing units. It further called on the city to immediately review the purchase-and-rent housing policy, which has been mired in controversy over corruption, overpriced purchases, and overheating of the real estate market.