Lee Jae-myung Administration Halts Controversial $1 Billion 'Fire Sale' of State Assets
President Lee Jae-myung has ordered a complete halt to the sale of $1.3 billion in state-owned assets initiated under the Yoon Suk-yeol administration, raising concerns about transparency in asset management. The move is expected to trigger a review of the appropriateness of these sales.
President Lee recently directed a full stop to the disposal of national properties undertaken during the Yoon administration. This action follows growing questions about the transparency of the sales process, with the core issue being that some assets were sold for significantly less than their appraised value.
At the heart of the controversy is the $1.3 billion worth of state assets that were sold. These disposals occurred over the three-year term of the Yoon administration, and concerns about a lack of transparency and potential undervaluation have plagued the process. Opposition parties and civic groups have loudly called for a thorough audit of these sales.
A presidential spokesperson emphasized that "It is only right that state-owned assets, which belong to the people, are sold at a fair value." They added, "This decision is an unavoidable measure to address the controversy over fire sales and to maximize the efficiency of state asset management." Furthermore, they stated, "We will conduct a thorough review of the entire state asset disposal process to identify problems and develop solutions."
Some critics view this move as a political attack on the policies of the previous administration. Certain right-leaning commentators have labeled the halt as "political retaliation" and a move that "undermines the stability of state affairs." However, the government has repeatedly emphasized that the measure is not targeted at any specific administration but is aimed at improving the overall state asset management system.
State-owned assets encompass all properties owned by the government and represent valuable assets funded by taxpayer money. Therefore, the principle is that they should be managed efficiently and utilized in the public interest. The government plans to develop measures to enhance the transparency of the asset disposal process and ensure the objectivity of appraisals.
The government also intends to increase citizen participation in the decision-making process by actively soliciting public opinion. To this end, information related to state asset disposals will be made publicly available, and public hearings and briefings will be held to gather public input. Civic groups have welcomed these efforts and urged continued efforts to ensure transparency in state asset management.
President Lee Jae-myung emphasized, "State-owned assets belong to all citizens, and unfair practices such as fire sales will never be tolerated." He added, "The government will make every effort to restore public trust and enhance the transparency of state asset management." Furthermore, he stated, "Through this action, we will dramatically improve the state asset management system and do our best to ensure that the people's assets are used properly."
Meanwhile, companies that anticipated progress with related projects are expressing dismay at the halt to the asset sales. In particular, companies that had contracts to purchase state-owned assets during the Yoon administration are expected to face difficulties due to the need to revise business plans and address investment recovery issues. The government plans to strengthen communication with these companies and seek ways to minimize the damage.
The government plans to use this as an opportunity to comprehensively overhaul the procedures and standards related to state asset disposals and actively pursue revisions to relevant laws and regulations as needed. It also plans to strengthen audits of state asset management practices and consider measures to strengthen penalties for unfair practices such as fire sales. The government stated that it will make every effort to increase the transparency and efficiency of state asset management and ensure that the people's assets are used properly through these efforts.
Following the government's announcement regarding the suspension of state asset disposals, the Ministry of Economy and Finance plans to hold meetings with relevant companies to hear their concerns and discuss ways to resume projects. It also plans to strengthen cooperation with civic groups involved in state asset disposals to establish transparent and fair disposal procedures.
