Audit Findings: A Deliberate Distortion of Reality

A extensive audit has confirmed that key government entities, including the Blue House and the Ministry of Land, Infrastructure and Transport, exerted undue and unfair influence over the compilation of housing statistics.This manipulation occurred precisely when the real estate market showed signs of stabilization or when government countermeasures appeared to be taking effect, according to the report.

The audit specifically alleges that senior presidential secretaries and officials within the Ministry of Land, Infrastructure and Transport pressured the Korea Real Estate Center and the National Statistical Office on 102 separate occasions over a period of three years and ten months, starting in 2018. The aim was to distort statistical data, leading to disciplinary actions and personnel data reporting.

The Mechanics of Manipulation: Suppressing Unfavorable data

The examination revealed that the Blue House and the Ministry of Land,Infrastructure and Transport made illegal demands for statistical materials that were still in preparation. They then allegedly instructed these agencies to artificially lower the reported rate of change in house prices, creating a false impression that the surge in the real estate market was being effectively managed.

Furthermore,the audit found that requests for pre-provision of real estate data were rejected more than a dozen times. The Blue House and the Ministry of Land, Infrastructure and Transport also reportedly used threats of budget cuts and personnel measures to exert pressure on the agencies responsible for collecting and reporting housing statistics.

Accountability and Denials: Who Knew What?

While the audit points to systemic manipulation, it also states that former Blue House Chief of Staff, Kim soo-hyun, and former Minister of Homeland Affairs, Kim Hyun-mi, are currently undergoing trial.The audit claims that former President Moon Jae-in was not involved in the statistical manipulation.

Recommendations for reform: Restoring Trust in Statistics

In light of these findings, the auditor has called for the development of a basic plan to improve the accuracy and reliability of official statistics. The auditor emphasized the need for thoroughness in the preparation and publication of statistical data to prevent future manipulation and restore public trust.

The auditor demanded attention by preparing a fundamental plan to improve the accuracy and reliability of statistics and to thoroughly work on statistics and publications.

Timeline and Context: A Lengthy Investigation

The auditorS announcement comes after the audit committee finalized it’s review on April 10th, concluding a process that began in September 2022 and lasted for six months. The audit itself was initiated two years and one month prior to the final announcement, highlighting the complexity and scope of the investigation.

The Broader Implications for the Real Estate Market

The revelation of manipulated housing statistics raises serious concerns about the integrity of the real estate market. Accurate data is crucial for informed decision-making by both individuals and institutions.Distorted statistics can lead to misallocation of resources, inflated asset bubbles, and ultimately, economic instability. For example, recent data shows that housing prices have increased by 15% in the last year, according to a report by the National association of Realtors, making accurate data even more critical.