The government will soon announce a high-intensity anti-speculation measure that has significantly raised the level of penalties for real estate speculation using undisclosed information in the wake of the alleged land speculation by Korea Land and Housing Corporation (LH) employees.
It is a policy to apply stricter punishment standards for public officials by using the LH incident as a balance sheet, but also to establish strict punishment standards for private real estate-related illegal activities.
According to related ministries such as the Ministry of Strategy and Finance and the Ministry of Land, Infrastructure and Transport, the government will discuss and announce countermeasures to eradicate speculation at the Emergency Anti-Corruption Policy Council held under the presidency of the President on the 29th after a party-political consultation.
This measure is expected to focus on thoroughly preventing and severely punishing public officials for illegal activities in real estate.
Employees of real estate policy-related ministries or public institutions are obligated to register property like high-ranking officials, and in case of acquiring real estate, be sure to report the details and source of funds.
Furthermore, it is completely prevented from acquiring real estate related to the field of work.
Nevertheless, penalties are strengthened in cases where illegal activities of real estate are committed using undisclosed information.
Any profits obtained from illegal activities by persons involved in the public housing business are confiscated and a fine of 3 to 5 times the profits is imposed.
If you earn more than 5 billion won, you will be sentenced to life imprisonment, and if you earn more than 500 million won and less than 5 billion won, you will be imprisoned for three years or more.
In the case of LH, the same penalties apply when using undisclosed work-related information in real estate transactions, as well as employees and retirees within 10 years.
Public officials related to real estate policy, LH employees, as well as third parties who receive information will be punished at the same level.
As the relevant bill was passed by the National Assembly on the 24th, these measures are expected to be implemented without a hitch.
Property registration rules apply half a year after the promulgation of the law, and punishment rules apply from the date of promulgation of the law.
The government is also considering ways to improve the management evaluation system to prevent moral harm to employees of public institutions.
We are looking for ways to increase points on ethical management and publicity, and to deduct management evaluation scores from more indicators in the event of a'large accident' such as the LH incident.
In the worst case, if a public institution receives a failing mark in the management evaluation, the head of the institution is dismissed.
Employees may be deducted from their incentives or may not receive them at all.
In the case of LH, if allegations of speculation by employees are confirmed to be true through investigations, etc., the management evaluation score already received may decrease, and the previously received incentives may be refunded.
The government plans to incorporate measures to eradicate real estate illegal activities not only by the public but also by the private sector.
Those who commit illegal real estate activities, such as speculation on the use of undisclosed information, are expected to block employment in land and housing-related institutions and restrict acquisition of related licenses such as certified brokers and appraisers.
When implementing a real estate policy, it is also discussed how to differentiate land compensation according to the target land holding period, and to make it mandatory to submit a financing plan for transactions in the case of land in the metropolitan area, similar to housing in overheated areas of speculation.