Moon Administration Spokesman Caught Up In Property Speculation Scandal

Another ruling party and Moon administration official caught up in a scandal:

A real estate investment by presidential spokesman Kim Eui-kyeom has prompted accusations that he is guilty of real estate speculation – which the administration has done its best to crack down on.

On Thursday, the Government Ethics Committee’s Public Service Ethics Program released this year’s report on assets of senior public servants, including Blue House aides and cabinet ministers. According to the report, Kim purchased a building in Heukseok-dong, southern Seoul’s Dongjak District, for 2.57 billion won ($2.26 million won) last July, just weeks before the government announced strong antispeculation measures that applied to that neighborhood. 

“Throughout the morning meeting, we discussed concerns over Kim’s purchase,” an official of the Blue House told the JoongAng Ilbo on Thursday. “We wonder if the public will accept the fact that he borrowed 1.6 billion won to make an investment in a redevelopment zone when the government was strongly pushing its policy to stabilize the real estate market.” 

To purchase the building, Kim borrowed over 1.02 billion won from Kookmin Bank. He borrowed another 360 million won from individuals. In total, he took out over 1.6 billion won in loans to purchase the building.

The property is located inside the Heukseok 9 redevelopment district, one of the hottest redevelopment projects in Seoul. Lotte Engineering and Construction will redevelop the area to build 11 buildings that will house 1,536 apartments under the name Heukseok Signature Castle. A realtor in the neighborhood said the project is considered to be highly profitable to investors depending on when they got in. (…..)

“It is common sense among ordinary people that you shouldn’t take out a huge loan and invest unless you are certain that the building will soon be redeveloped,” said another Blue House official. “If accusations are made that Kim used information he obtained as the presidential spokesman and made the investment, the situation can be uncontrollable.”

Joong Ang Ilbo

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