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South Korea Freezes State Asset Sales as Lee Orders Privatization Rules Overhaul

Audits that flagged cut‑price disposals prompted the halt with plans to require broader public input.

Overview

  • President Lee Jae Myung imposed an immediate moratorium on disposing of government-owned assets, halting all ongoing and planned sales.
  • Ministries were told to review current cases, limit disposals to truly unnecessary assets, and seek prior approval from Prime Minister Kim Min-seok for any necessary sales.
  • Lee directed an overhaul of privatization regulations to better reflect public opinion, with consideration of formal consultation with the National Assembly.
  • KAMCO data cited in parliamentary audits showed disposal cases rising to 349 in 2023 and 795 in 2024, with below-appraised-value sales increasing to 149 and 467, intensifying concerns over losses.
  • The Finance Ministry postponed a planned briefing until a procedural review is completed, as officials pledged to swiftly establish facts and propose system improvements.