A Six Year-Old Boy Reportedly Purchased 35,000-Pyeong of Forestland

Thorough investigations will be undertaken for 54,966 persons who were allegedly involved in speculative land transactions in areas where large-scale development is in progress. The suspects include a six year-old boy who purchased 35,000-pyeong of forestland in Boryeong-si, Chungnam and a person who bought 384,000-pyeong of lands in Gwangyang-si, Jeonnam 19 times in nine months.

Additionally, there was an investor who sold 57,000-pyeong of farmlands 200 times in nine months.

The Ministry of Construction and Transportation delivered a list of 54,966 persons who are suspected to have undertaken speculative land transactions in 26 areas including the metropolitan area, Chungcheong-do (Chungnam, Chungbuk, and Daejeon), Jeonnam (Haenam, Yeong-am, Muan, Gwangyang), Gyeongnam (Hadong, Sacheon) and Gangwon (Wonju) and Jeonbuk (Muju) from July 2004 to March 2005 to the National Tax Service on June 17.

A list of investors who had transferred lands was also reported to local governments in order to investigate whether they violated the land transaction approval system.

Those who falsely transferred lands are accused by the prosecution and sentenced to imprisonment or levied a penalty no higher than 30 percent of the land prices.

According to the Ministry of Construction and Transportation, those who purchased lands in the concerned regions during the investigation period amounted to 174,829 persons, and the lands were as large as 163 million pyeong.

Those categorized as suspects are 63,811 persons including those who purchased land more than two times (28,860 persons), those who bought land larger than 3,000-pyeong (12,216 persons), minors (328 persons), those who had been convicted as a speculative investor and purchased lands (6,316 persons), those who transferred lands more than two times (2,801 persons), those who received lands more than two times (1,693 persons), and those who sold land more than two times in the 26 development areas (11,597 persons).

The finalized list of 54,966 persons that excludes overlap of these persons was brought to the attention of the National Tax Service.

In addition, the Ministry of Construction and Transportation plans to closely examine detailed lists of approved land transactions in major speculative areas of the nation every month in order to investigate illegal actions such as real estate agencies’ fraudulent land transactions, and announce the list to all related institutions including the National Tax Service.

The 26 areas are: Gimpo, Paju, Seongnam, Hwaseong, Cheonan, Asan, Gongju, Yeongi, Nonsan, Gyeryong, Dangjin, Seosan, Yesan, Taean, Cheongwon, Cheongju, Chungju, Haenam, Yeongam, Muan, Gwangyang, Muju, Hadong, Sacheon, Changnyeong, and Wonju.

Jae-Seong Hwang jsonhng@donga.com