LCT scandal reminiscent of government corruption

Haeundae in Busan has three “Cities”: Centum City, Marine City and LCT. LCT under construction is located near the Haeundae Beach. A 101-floor landmark tower and two 85-floor residential towers to be completed in 2019 will end the “sea change of Haeundae.” The expectation is reflected in the pre-sale price per 3.3 square meters, which hit a record of 72 million won (63,890 U.S. dollars), last year. However, it has problems to truly become the most high-end residential and commercial complex.

In the parliamentary audit, lawmakers pointed out that LCT won numerous unfair favors from the city of Busan. The land, which cost 233 billion won (206.7 million dollars) for creation, was sold at 233.3 billion (207.1 million dollars), and residential facilities, which had been banned, were allowed. The regulatory height of the building, which was limited to 60 meters, was changed to higher than 400 meters. This explains why people raise suspicions that Lee Young-bok, CEO of Cheongan Construction, the developer, created a slush fund of 100 billion won (88.7 million dollars) and lobbied politicians, judges and prosecutors and government officials.

The Busan District Prosecutors’ Office brought Monday the case involving the corruption of LCT covered by its eastern branch back to the head office and added more prosecutors to the case. As the Inspection Department of the Supreme Prosecutors’ Office was grilled by lawmakers in the parliamentary audit for not checking the facts to identify the existence of the entertainment list including judges and prosecutors, prosecutors seem to take a belated hurried action. It is natural to raise questions whether prosecutors can investigate a variety of suspicions spread until the start of construction in October last year.

The LCT project was approved in 2011, which is irrelevant to the Park Geun-hye administration. Even after obtaining the approval, it had hard time in raising funds. To attract foreign investors, the government designated the area as the destination for real estate investment by foreigners in May 2013, when the administration was in the early stage. The scope of the subject was 561 hotel rooms, not a region. While the government claims that there was no favor, it does not sound right. Am I too sensitive that the case reminds me of the unfair lending for Hanbo under the Kim Young-sam administration and the government corruption involving grating permits and approvals such as Pi City under the Lee Myung-bak administration.