Seoul: President Lee Jae Myung issued emergency instructions on Monday to stop the disposal of government assets, responding to concerns that these assets are being sold at a loss, as reported by officials.
According to Yonhap News Agency, Culture Minister Chae Hwi-young, acting as the government spokesperson, announced the president's directive without specifying which assets were involved.
The decision came after issues were highlighted during recent parliamentary audits indicating that state assets were being sold at significantly lower prices. Presidential spokesperson Kim Nam-jun noted that the order was a result of these audits, where lawmakers pointed out increasing instances of state assets being sold for less than their fair market value.
During an audit session of the Korea Asset Management Corp. (KAMCO), which oversees state-owned properties, lawmakers raised alarms about the escalating number of assets sold below their appraised value. In response, Kim stated that the ministries in charge plan to quickly verify the facts and propose improvements to the current system.
In his statement, Minister Chae conveyed that President Lee has directed each ministry to reconsider the continuation of ongoing asset disposals, advising against such actions unless the assets are deemed unnecessary. Additionally, Lee mandated that any necessary disposals must receive prior approval from Prime Minister Kim Min-seok.
The finance ministry initially planned a press briefing for 10 a.m. Tuesday to detail Lee's emergency order. However, it was postponed to allow for a comprehensive review of the current disposal procedures, aiming to provide more useful insights.
Under the previous administration of Yoon Suk Yeol, the government was tasked with selling underutilized assets to enhance the fiscal health of public institutions. According to data submitted by KAMCO to Rep. Park Min-kyu of the ruling Democratic Party, the number of disposal cases surged from 145 and 114 in 2021 and 2022, respectively, to 349 in 2023 and 795 last year. The number of instances where assets were sold for less than their appraised value also rose significantly, from five cases in 2022 to 149 in 2023 and 467 last year.