[Alpha Biz= Kim Jisun] Under a new policy, the Korean government will be required to report in advance to the relevant National Assembly standing committee when selling government-owned assets worth more than KRW 30 billion. In addition, discounted sales below the appraised value will be fundamentally prohibited.
The measures are intended to prevent a recurrence of controversy over rushed asset disposals, which surfaced during the sale process of YTN, a broadcaster partially owned by the government.
On the 15th, the Ministry of Economy and Finance announced a comprehensive overhaul of the government asset sale management system to prevent so-called “fire-sale” disposals. The move follows President Lee Jae-myung’s directive on November 3 to suspend all government asset sales.
The ministry explained that the measures reflect concerns that under the previous Yoon Suk Yeol administration, aggressive promotion of government asset sales led to multiple cases of hasty and undervalued transactions.
Under the new framework, sales of assets valued at more than KRW 30 billion must be reviewed by the Cabinet and reported in advance to the relevant parliamentary standing committee. Asset sales exceeding KRW 5 billion will be subject to reporting and approval by specialized review bodies, such as the National Property Policy Deliberation Committee. Previously, individual ministries and agencies were able to sell government assets at their own discretion.
Discounted sales below the appraised value will be prohibited in principle. Even in cases where discounted sales are deemed unavoidable, prior approval from the National Property Policy Deliberation Committee will be required. Currently, assets that fail to sell after two or more bidding rounds may be sold at discounts of up to 50% of the appraised value.
To enhance the reliability of asset appraisals, appraisal reviews for high-value assets exceeding KRW 1 billion will now require a certification review issued by the Korea Association of Property Appraisers. The government also plans to tighten regulations on private contract sales by narrowing the criteria stipulated in relevant laws governing state-owned property.
In addition, the government will expand public disclosure of asset sale information by publishing bidding details on its online platform, OnBid. After a sale is completed, information such as the asset’s location, sale price, and reason for disposal will be disclosed to strengthen post-transaction external oversight.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
