Gyeonggi Province Indicts 54 People for Obtaining 58.1 Billion Won in Speculative Profits Through Agricultural Land Subdivision

[Suwon Ilbo=Park No-hun Reporter] The Gyeonggi Province Anti-Corruption Investigation Team, which has been investigating real estate speculation in Gyeonggi Province, announced on the 7th that it has identified a massive number of 54 individuals and others who violated the Agricultural Land Act, including those who obtained speculative profits ranging from hundreds of millions to tens of billions of won per person through agricultural land subdivision.

This is the result of intensive audits conducted by the provincial Anti-Corruption Investigation Team on 7,732 agricultural land parcels traded from January 2013 to March this year in six development zones (Gwangmyeong Hakun, Seongnam Geumto, Yongin Platform City, Anyang Indeokwon, Anyang Gwanyang-go, and Pyeongtaek Hyundeok Districts) being promoted by the province and Gyeonggi Housing & Urban Development Corporation since early March this year, as well as seven development zones (Namyangju Wangsuk, Hanam Gyosan, Goyang Changneung, Ansan Jangsang, Gwangmyeong Siheung, Gwacheon Gwacheon, Bucheon Daejang) designated for the third new cities.

The provincial Anti-Corruption Investigation Team selected in-depth investigation targets by checking the issuance ledgers of agricultural land acquisition qualification certificates for these agricultural lands.

Subsequently, after ownership verification, on-site inspections, review of agricultural land laws, and real estate speculation reviews, violations of the Agricultural Land Act were confirmed on 321 parcels covering 387,897 square meters (equivalent to 38 football fields). By type, violations included ▲suspected agricultural land speculation ▲illegal leasing ▲fallow land ▲illegal activities.

There are 54 individuals suspected of agricultural land speculation. They purchased 156 agricultural land parcels covering 121,810 square meters (equivalent to 12 football fields) for 34.51 billion won, then subdivided and resold them to 2,214 people in portions of 0.08 square meters to 1,653 square meters for 92.7 billion won, thereby obtaining 58.19 billion won in real estate speculative profits.

The provincial Anti-Corruption Investigation Team decided to indict 18 individuals who obtained speculative profits of 1 billion won or more to the police, while arranging for the remaining 36 individuals to be indicted through their respective municipal governments.

Looking at examples, Mr. A, a resident of 〇〇 City in Gyeonggi Province, purchased 31 agricultural land parcels covering 9,973 square meters near the 〇〇 development zone for 3.36 billion won from 2016 to 2020, and subdivided and resold them to 167 people in portions of 10 to 410 square meters for 8.99 billion won starting from the date of ownership transfer, thereby obtaining 5.63 billion won in speculative profits.

Mr. B, a resident of 〇〇 Province, purchased 16 agricultural land parcels covering 7,784 square meters near the 〇〇 development zone for 3.4 billion won from 2020 to the present, and subdivided and resold them to 261 people in portions of 1.65 to 231 square meters for 8.63 billion won within one year from the date of ownership transfer, thereby obtaining 5.23 billion won in speculative profits.

The Anti-Corruption Investigation Team explained that it confirmed that these 54 individuals acquired agricultural land for purposes of farming operations and weekend experience farming, then resold them within an average of one year from the date of acquisition, thereby generating large profits from price differentials, in violation of Articles 6 and 8 of the Agricultural Land Act.

Among the subdivided agricultural land sold by these individuals, 16 parcels were confirmed to be fallow for extended periods, demonstrating that agricultural land is being used as a means of real estate speculation rather than for farming.

There were also not a few cases of illegal leasing of agricultural land.

As a result of this investigation, illegal leasing was confirmed on 183 parcels covering 283,368 square meters owned by 733 individuals.

Cases in which individuals acquired agricultural land stating they would farm, but then immediately leased it to others without legitimate reason also constitute violations of the Agricultural Land Act for "restricting agricultural land ownership and improperly acquiring agricultural land," since there was no intent to farm from the time of acquisition.

As a result of analyzing the residential locations of the 733 individuals, 91% (663 individuals) were found to reside in areas more than 30 kilometers in a straight line away from the agricultural land they own. The provincial Anti-Corruption Investigation Team explained that this inevitably raises questions about whether these individuals had any intent to farm at the time of agricultural land acquisition.

Cases in which agricultural land was purchased but left fallow for years (not farmed) or used for other purposes were also confirmed on 19 parcels covering 10,238 square meters, involving 279 individuals.

Among these, a paddy field of 390 square meters located in 〇〇 Eup, 〇〇 City was sold by Mr. C, a resident of Seoul, to D and 8 others in June 2020, but had not been farmed for a long time and was overgrown with weeds.

The owners also reside in distant areas such as South Jeolla, Gwangju, Busan, and Seoul, indicating a high possibility that the land will continue to be neglected.

There were also 2 parcels covering 1,288 square meters (6 individuals) with cases of illegal use of agricultural land without permission.

E converted a 1,050 square meter paddy field located in 〇〇 Dong, 〇〇 City into a building site, installed a vinyl house warehouse, and has been using it as a storage warehouse for clothing and recycled goods.

F and 5 others were caught after paving a 238 square meter paddy field located in 〇〇 Eup, 〇〇 City and changing its use to an access road and parking lot.

There were also cases in which minors (3 individuals) or elderly people over 90 years old (4 individuals) acquired agricultural land.

Considering the academics, age, and economic capabilities of these individuals, it is difficult to see that they actually had intent to farm when acquiring agricultural land, and suspicion of real estate speculation through nominee transactions (violation of the Real Estate Real-Name Act) also exists. The province plans to notify the relevant municipal governments to investigate whether there are violations of the Agricultural Land Act and other laws.

The provincial Anti-Corruption Investigation Team plans to notify the relevant municipal governments of agricultural land with confirmed violations of the Agricultural Land Act including illegal leasing, fallow land, and illegal activities, and implement administrative actions such as criminal indictment, investigation referral, or orders for agricultural land disposal or restoration to original conditions.

Vice Director Kim Jong-goo of the provincial Anti-Corruption Investigation Team said, "This audit is a sample investigation of agricultural land with high possibility of speculative transactions, and if the audit scope is expanded, the scale of violations is likely to be much larger," and added, "To eliminate real estate speculation, active comprehensive investigation of actual agricultural land conditions by cities and counties is necessary."

Previously, the provincial Anti-Corruption Investigation Team identified on the 21st of last month 26 agricultural corporations that falsely purchased approximately 600,000 square meters of agricultural land, subdivided and resold it to 4,020 people, and realized 139.7 billion won in illegal profits, of which 25 were indicted to the police.

Meanwhile, the provincial Anti-Corruption Investigation Team plans to notify the police of the names of 16 public officials who refused consent for the use of personal information of relatives, including direct lineal relatives and family members of spouses, without special reasons during the real estate speculation audit process that began in March.