[알고보니] Gangnam Net Building, Selling as ‘Playing Land’?

◀ reporter ▶

I know it starts.

Even today, a dispute arose between the ruling and opposition parties over the government’s announcement that it would actively sell land and buildings owned by the country to the private sector.

[추경호/기획재정부 장관 (지난 8일)]

“We will sell idle and underutilized properties that are not being used productively among state-owned properties for a total of 16 trillion won + a over the next five years.”

The plan is to revitalize the private economy and add to the national finances by selling idle or underutilized real estate to the private sector, he explained.

I went to the site to check whether the government’s announcement was true.

◀ Report ▶

It is a building that the government has identified as an ‘old residence’.

It is a new 7-story building located at the Sinsa-dong intersection in Gangnam-gu, Seoul, and is home to various stores such as high-end imported car stores and plastic surgery clinics.

There is no trace of ‘article’ written anywhere.

It turned out that in the past, it had been used as an office for the National Tax Service, but the Ministry of Economy and Finance entrusted development to Korea Asset Management Corporation and Camco to build it once more as a commercial building in 2018.

[조정흔 감정평가사]

“(Buildings like this) are passed down to descendants or used in this way, and we don’t sell them recklessly unless businesses and households go bankrupt.”

The pandas, which are called ‘small idle areas’, also visited the land of Gangnam.

The idle site is not visible, and two 9-year-old 6-story and 4-story buildings stand side by side.

It is also a building that was developed by the Ministry of Strategy and Finance in the past, and various stores including beauty salons and law offices are located there.

[인근 부동산중개업소]

“(Because the commercial area is fine) When a vacancy comes out, it will be filled in some way.”

How regarding a place called ‘old house’?

All three buildings were built in 2008, but the surrounding commercial area has also developed, and most of the shops are located on the first floor.

After all, the announcement of the Ministry of Strategy and Finance that the state-owned property to be sold is ‘idle land, government offices, and old houses’ is not true.

[기획재정부 관계자]

“It is said that the old residence was developed and now it is a different building.”

The government said that the appraised value of the buildings is regarding 200 billion won, and if it coincides with the rising real estate, the new owner of the building is expected to make quite a profit just by reselling it.

Above all, stores that have signed a lease contract are concerned regarding the disadvantages they will receive if the owner of the building changes to a private sector.

[국유재산 입주업체]

“(If it goes to the private sector), it will be completely bad. Other building owners raise the (rent) amount very large, but here it is raised within a set limit of 5%..”

Even though it is immediately revealed that it is not a so-called ‘playing land’ just by going to the site, the reason for hiding it is raising suspicions that the government is trying to sell real estate that has both publicity and profitability to make up for the insufficient tax revenue.

◀ reporter ▶

Since the real estate to be sold has an appraised value of tens or hundreds of billions of won, it is only the corporations or property owners who can actually buy it.

In addition, it is difficult to receive the right price even if you sell it as real estate is in a downturn now, so it seems that we need to think more deeply regarding the public nature of government assets.

I know it’s Jun-Hong Jeon.

※ [알고보니]is the fact check corner of MBC News.

Source: Hyein Kwon, Hosu Park / Director: Dawon Jeong

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