President Lee Jae Myung ordered a whole halt to authorities asset gross sales at the moment underway or beneath evaluation on Nov. 3. This directive was delivered to all ministries and seems to stem from his evaluation that systemic enhancements are wanted following revelations that state property was offered in bulk at fire-sale costs beneath even appraised values in the course of the earlier administration.
Authorities Spokesperson and Minister of Tradition, Sports activities and Tourism Choi Hwi-young introduced Lee’s emergency directive to “utterly halt authorities asset gross sales” on Nov. 3. Choi said, “President Lee ordered all ministries to conduct a whole evaluation of ongoing and deliberate asset gross sales earlier than making selections on whether or not to proceed,” including, “He instructed that gross sales ought to usually be restrained aside from pointless property, and when gross sales of important property are unavoidable, prior approval from the prime minister have to be obtained.”
Lee’s surprising directive to utterly halt authorities asset gross sales with out prior discover is interpreted as demonstrating his resolve to eradicate the practices of fire-sale disposals of state property that have been repeated in the course of the earlier administration. Based on the Nationwide Funds Workplace, state property had elevated yearly because the authorities started getting ready state property administration studies in 2012, however started reducing beneath the Yoon Seok Youl administration. 2023 and final yr marked the primary two consecutive years of decline.
State property, which reached a file excessive of roughly 1,369 trillion gained in 2022, subsequently decreased by 100 billion gained (-0.01%) in 2023 and 24 trillion gained (-1.8%) in 2024, shrinking to round 1,344 trillion gained.
The interval of declining state property coincided with the federal government’s elevated have to promote authorities property to cowl huge income shortfalls. Lee is understood to carry damaging views concerning the follow of promoting state property at fire-sale costs on account of causes similar to income shortages.
Certainly, final yr’s state property gross sales reached 77 trillion gained, the biggest quantity since administration studies started. This represents a rise of practically 70% in comparison with the earlier yr’s gross sales of 45.3 trillion gained. Final yr’s whole disposal quantity, together with contributions in type, additionally considerably exceeded the unique disposal plan. Whereas the state property complete plan set the disposal goal at 33.3 trillion gained for final yr, the precise disposal quantity reached 78.6 trillion gained, representing an extra disposal charge of 136% in comparison with the plan. Lee Sang-min, senior analysis fellow on the Nationwide Funds Workplace, identified, “In comparison with income and expenditure budgets, there’s inadequate management by the Nationwide Meeting and residents over state property gross sales,” including, “For disposals above a sure scale, prior Nationwide Meeting deliberation and disclosure of sale lists and causes ought to be required.”
The hearth-sale of state property additionally emerged as a subject in the course of the October parliamentary audit. Based on “State Property Gross sales Standing” knowledge submitted by Korea Asset Administration Corp. (KAMCO) to Democratic Celebration Consultant Heo Younger of the Nationwide Meeting’s Public Administration and Safety Committee, the federal government suffered monetary losses of 133.9 billion gained throughout state property gross sales beneath the previous Yoon Seok Youl administration.
Prof.r Woo Seok-jin of Myongji College identified, “Throughout the Yoon administration, the frenzy to promote property to cowl income shortfalls led to frequent circumstances of not receiving correct worth, together with gross sales at half value,” including, “I perceive that corruption additionally occurred on this course of involving retired civil servants.” Woo continued, “It will disappear as soon as revenues normalize,” stating, “Even when promoting pointless property, correct worth have to be obtained.”
