Scope of Reconstruction Investigation to be Expanded Considerably

The detailed investigation into reconstruction plans which was to be done only on some reconstruction complexes in the Gangnam area will be expanded to all over southern Seoul, including Gangnam, Seocho, Songpa and Gangdong-gu.

This investigation will be carried out throughout the other areas in Seoul and their surrounding metropolitan areas in the second half of this year.

The Construction and Transportation Ministry (MOCT) said on Wednesday, May 11, “In order to investigate whether there was illegality in the process of reconstruction planning, the current ‘reconstruction planning inspection team’ in the housing bureau’s residential environment division will be expanded and made into a separate organization.”

The MOCT will appoint someone at the director level as head of the team and place experts from related organizations, including the Korea National Housing Corporation, the Korea Appraisal Board, and the Korea Infrastructure Safety and Technology Corporation to form a reconstruction investigation team of five to six people.

The team will constantly examine the reconstruction planning situation step-by-step and track down and investigate overheated speculation zones or transaction reporting areas for false reports of housing transactions.

After a detailed investigation into apartment complexes in Gangnam which are planning reconstruction, the subjects for investigation will be expanded to apartments in other parts of Seoul and the metropolitan area, which show abnormal signs.

If reconstruction is instigated, such as making a false drawing plan for an apartment complex which has no possibility of reconstruction and holding a presentation to the residents, it will be charged to the prosecution for disturbing the market by the housing construction promotion law.

According to this law, the disturber will be sentenced to two years or penal servitude, or a fine of 20 million won or lower.

Prior to this, the team went through an investigation on construction or planning firms and real estate agencies which asked or incited skyscraping reconstruction to middle-story (10 to 15 floor) apartment complexes, including Hyundai Apartments in Apgujeong-dong and Hanshin Apartments in Jamwon-dong.

Sang-Rok Lee myzodan@donga.com