Cabinet nominee under fire for alleged land speculation

The wife and father-in-law of Knowledge Economy Minister-designate Choi Joong-kyung earned big profits from real estate speculation in Daejeon, the main opposition Democratic Party said Friday.

Choi’s wife and father-in-law bought land in Daejeon’s Yuseong district and a home close to the Honam Expressway.

The Democratic Party said Choi bought the properties under the names of his wife and father-in-law in 1988 and earned in profit 15 times the purchase price at 610,000 won (542 U.S. dollars) per square meter after the government expropriated the land for road construction last year.

The land is called a “hakha” zone because it resembles a crane sitting on eggs. Designated a development restricted zone until 2003, the area is known as a lucrative site for real estate developers.

The land is adjacent to Mount Gyeryong and five minutes away from the Yuseong springs. Housing developments have been planned in the zone and Doan New City 1 kilometer away since long ago, and construction of apartment complexes is underway.

On the land in the Yuseong district owned by Choi’s father-in-law, a man is temporarily running a factory. Fruit trees are also planted in the field.

The single story, tile-roofed house has been empty since it was included in the land slated for roads last year. In the land owned by Choi’s wife, peach trees are being grown.

The owner of a nearby restaurant said, “I don’t know who owns the land but I heard one got 1.1 billion won (980,000 dollars) and the other 300 million won (267,000 dollars) in compensation after it became land for roads.”

The compensation was reportedly 610,000 won per square meter, 15 times larger than the purchase price in 1988.

Another resident said, “Most land owners here gained profits after the development restriction was lifted and compensation given,” adding, “Because of close proximity to the expressway, the land is inappropriate for housing.”

A Yuseong official said, “Speculation by outsiders began booming in the late 1980s with the possibility of rising development,” adding, “But growth in land prices hasn’t been higher than other areas.”

doyoce@donga.com