An executive official, who was in charge of the urban railroad extension project at a local government in Gyeonggi Province, borrowed billions of won to purchase land and buildings near the planned railway station, which is causing controversy.
In September of last year, Mr. A, an executive at the city hall, purchased a two-story prefabricated building with 2,600 square meters of land near the planned historic site of the extended urban railway line under the joint name of his wife.
The purchase cost of 4 billion won was raised through mortgage loans and credit loans.
From the end of 2018 to the end of 2019, Mr. A worked as an executive in the department in charge of the urban railroad extension project at the local government, and was in charge of practical duties such as exemption from preliminary feasibility.
This raised suspicion of speculation that the purchase of real estate near the station was made using prior information learned while in charge of the business.
Mr. A is in the position that there is no problem with the fact that there is a railway station in the area because it is already known.
Mr. A explained, "At first, I was a public official, so I tried not to buy the land, but due to the circumstances of the land owner, I inevitably bought it."
Mr. A added, "It is the land and buildings attached to the land purchased six years ago, and I bought it for investment purposes in order to clear up public offices early and do business."
The urban railroad extension project was reflected in the 3rd National Railroad Network Construction Plan (2016-2025) in 2016 as a new undertaking, and a budget of more than 1 trillion won was invested, aiming for opening in 2028.
This project is currently being approved by the Ministry of Land, Infrastructure, and Transport by completing a public hearing on the feasibility evaluation and basic plan establishment service.
In the basic plan, three stations were built in the local government, and the location was virtually confirmed.