It has been found that the Korea Land and Housing Corporation (LH) has requested the Ministry of Land, Infrastructure and Transport to apply special cases for pre-sale housing to public and public land where only rental housing can be built and to reconsider the housing of the ‘Land Lease Department’. In addition, LH was found to have made more than 4 trillion won in profits by selling ’10-year pre-sale conversion’ houses. There are criticisms that LH, which aims to support low-income households, is only focusing on making profits through house and land sales.
Sim Sang-jeong, a member of the National Assembly Land Transport Committee, and Justice Party lawmaker obtained the ‘Proposal for System Improvement Related to Public Lands’ submitted by LH to the Housing Supply Innovation Committee of the Ministry of Land, Infrastructure and Transport in June and released it on the 4th.
Land lease housing is a system that lowers house prices and contributes to the maintenance of public property through redemption. It is being used in various ways, such as the half-price apartment policy needed to stabilize the housing of the common people. Under the current law, only rental houses can be built on public land for which LH has requested special housing for sale.
In the document, LH said, “When the lease period (40 years) is over, friction is expected in building appraisal standards, reconstruction agreements, cost sharing, etc.” It is suggested to reconsider the introduction of the method.” Regarding special cases on public land, he said, “Public housing projects in the Public Housing Special Act are applicable only to public rentals, and public housing projects that maintain administrative assets are not available for sale.” timed
This is a point that deserves criticism that LH is reducing its public rental housing policy for the underprivileged and focusing on securing profits through the sale of real estate.
Rep. Shim Sang-jung at the LH audit on the same day said, “Live-storey and land-buying permits have been granted to the Ministry of Land, Infrastructure and Transport by the LH, which has a responsibility to improve the lives of citizens living in poor living conditions due to climate disasters such as the last semi-subterranean disaster in Sillim-dong. I was choked,” he criticized.
He continued, “LH denied the reason for its existence and became frantic with the housekeeper, stealing even the share of the underprivileged, resulting in 1.8 million hells and neglect of the housing vulnerable.” Prepare,” he urged.
Meanwhile, it was found that LH made several trillion won in profits by selling public rental housing converted to pre-sale in 10 years.
According to the results of analysis of the data received by Assemblyman Shim from LH, 4.4 trillion won in profit was generated from the 29,000 public rental housing units sold for 10 years that were sold since 2019.
The total conversion price of public rental housing with conversion to sale in 10 years was divided by 10,911.5 billion won by the number of houses by 28,41 units to calculate the conversion price of 390 million won per unit. Here, the income per house was calculated by subtracting 240 million won, which is the average of the initial house price per house (the price suggested in the notice of occupant recruitment).
As a result, LH earned 150 million won for every 10 year conversion public rental housing sold. Multiplying the revenue per household by 150 million won and the total volume of 29,69 units, the total revenue is 4.36 trillion won.
The region with the highest per capita income was Gangnam, Seoul with 580 million won, followed by Seongnam Pangyo with 490 million won. Goyang Wonheung was 230 million won, Suwon Gwanggyo 200 million won, and Suwon Homaesil 100 million won. A total of 11,619 houses in five districts were converted for sale, and the total revenue generated from them is expected to be KRW 3.35 trillion.
The 10-year conversion conversion public rental housing was a public rental housing policy that was introduced at the time of the Participatory Government for the purpose of ‘preparing homes for low-income earners’. However, when the rental period ended and the sale conversion price was calculated reflecting the market price, the price increased by up to 580 million won per unit compared to the initial purchase price.
Assemblyman Shim pointed out, “As a public housing development company, the house was built at a lower price than the market price through land expropriation, but when sold, it was sold at a higher price by applying the market price. .
Regarding the public rental housing for 10 years conversion, “It is a fake public rental housing because it is a house that is sold to the private sector after a 10-year lease. As the 10-year conversion housing is sold, public rentals are decreasing. It should also be disclosed whether they are being used,” he said.