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    ‘The Den of Thieves’: South Koreans Are Furious Over Housing Scandal

    President Moon has spent years trying to curb runaway housing prices. Now several officials in his government are under investigation for contributing to the problem ahead of important elections.SEOUL — ​The 10 people bought $8.8 million worth of land in an undeveloped area southwest of Seoul, registering it for farming and planting numerous trees. It’s a common trick used by shady real estate speculators in South Korea: Once the area is taken over for housing development, the developers must pay not only for the land, but the trees, too.A national outrage erupted this month when South Koreans learned that the 10 people were officials from the Korea Land and Housing Corporation (LH) — the government agency in charge of building new towns and housing — suspected of using privileged information to cash in on government housing development programs.The incident has thrown President Moon Jae-in’s government into crisis mode just weeks before key mayoral elections that are largely seen as a referendum on him and his party ahead of next year’s presidential race. Young South Koreans are saying they are fed up with corruption and the president’s failed policies on runaway housing prices. The LH scandal is now set to become a critical voter issue in Mr. Moon’s final year in office.“When my girlfriend and I discuss how we are going to find a house in Seoul for the family we are going to start, we can’t find an answer,” said Park Young-sik, 29, an office worker. “The LH scandal shows how some people in South Korea make a quick fortune through real-estate foul play, while the rest of us can barely buy a house even if we toil and save for a lifetime.”President after president has promised to make housing more affordable in South Korea, but real-estate prices have kept soaring, undermining public trust.Rising housing prices have long been one of the country’s most intractable policy headaches, especially in Seoul and the surrounding Gyeonggi Province, where nearly half the country’s population lives, crammed into everything from gleaming apartment towers to urban slums.A protest in Seoul outside offices for the Korea Land and Housing Corporation, the government agency in charge of building new towns and housing.Yonhap/EPA, via ShutterstockReal-estate speculation has become something of a national sport, but the suspicion of insider trading among public officials made the LH story stand out. Anger spread quickly, especially among young South Koreans who have been crushed by the country’s dwindling job opportunities.“The den of thieves!” read one of the many signs young protesters plastered on the doors of an LH office in Seoul this month.Voters in South Korea’s two largest cities — Seoul and Busan — go to the polls on April 7 to choose their mayors, and many observers said the elections could reflect poorly on Mr. Moon’s performance. Survey results showed that the LH news was dragging down approval ratings for both him and his party, most sharply among South Koreans in their 20s.“I am sorry for worrying the people greatly, and for deeply disappointing those people who have lived honestly,” Mr. Moon said last week, vowing to eliminate “real estate corruption widespread in our society” as a priority of his last year in power.Apartment prices in Seoul have soared by 58 percent during Mr. Moon’s tenure, according to data from the government-run Korea Real Estate Board. Some of the units in popular residential districts in Seoul have nearly doubled in price in the same period.Rising housing costs have been blamed for creating a vicious cycle in which families believe real estate investments are foolproof, despite being warned otherwise by the authorities. Experts believe the soaring housing costs have also contributed to the country’s declining fertility rate, one of the lowest in the world, by discouraging young Koreans from starting a family.The insidious​ divide among young people in South Korea has become a popular topic in K-dramas and films, including Bong Joon Ho’s “Parasite.”​ The “dirt-spoons” struggle to manage an ever-expanding income gap while the “gold-spoons,” the children of the elites, glide through a life of privilege. The problem also featured prominently in the real-life downfall of the former president, Park Geun-hye,​ and the jailing of the Samsung Electronics vice chairman, Lee Jae-yong.Police investigators removing items confiscated from a Korea Land and Housing Corporation office in Gwacheon, south of Seoul. Yonhap/EPA, via ShutterstockWhen Mr. Moon took office in 2017, he promised a “fair and just” society. His government has introduced dozens of regulatory steps to curb housing prices, including raising capital-gains taxes on house flipping and property taxes on multiple-home owners.None of these measures have worked.Last month, the Moon administration announced plans to supply more than 836,000 new housing units in the next four years, including 70,000 homes to be built in the area southwest of Seoul at the center of the LH scandal. Two civic groups were the first to report that 10 LH officials bought land there months before the highly secretive development plan was announced, accusing the officials of capitalizing on insider information for personal gain, a crime in South Korea.The government has identified 20 LH officials who are suspected of using privileged information to buy land in various areas before projects were slated to begin there. The investigation has been expanded to target government employees outside of LH, including members of Mr. Moon’s staff. As the dragnet grew larger, two LH officials were found dead this month in apparent suicides. One of them left a note confessing to an “inappropriate deed,” according to the local media.“LH officials had more access to information on public housing projects than any other, but sadly, we also learned through our investigation that they were ahead of others in real estate speculation,” said Lee Kang-hoon, a lawyer at the People’s Solidarity for Participatory Democracy, one of the two civic groups that uncovered the corruption among the LH officials.Mr. Moon’s political enemies have been quick to fan the flames among angry voters.The Changneung district in Goyang, east of Seoul, where the government plans to develop a new town to help alleviate the housing crunch. Yonhap/EPA, via Shutterstock“Stealing public data for real estate speculation is a crime that ruins the country,” the former prosecutor-general, Yoon Seok-youl, told the conservative daily Chosun Ilbo this month while criticizing the government’s handling of the situation.Mr. Yoon has become a darling among the conservative opposition, and recent surveys showed him to be one of the most popular potential candidates in next year’s presidential election. He recently clashed with Mr. Moon over the president’s effort to curtail the power of prosecutors, and resigned early this month.Lee Jae-myung, the governor of Gyeonggi Province, is another potential candidate in next year’s race. The liberal governor hopes to represent Mr. Moon’s party in the election and has promoted a “basic housing” policy in which the government would provide cheap and long-term rentals for South Koreans.He recently urged Parliament to enact a comprehensive law banning conflicts of interest among public servants. “If you want to clean the house, you must first clean the mop,” he said. “If you want to make South Korea a fair society, you must first ensure that those who make and implement policies act fairly.” More

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    N.Y.C. Mayor Candidates Court Unions and Latino Voters

    #masthead-section-label, #masthead-bar-one { display: none }N.Y.C. Mayoral RaceWho’s Running?5 TakeawaysCandidates’ N.Y.C. MomentsAn Overview of the RaceAdvertisementContinue reading the main storySupported byContinue reading the main storyCourting Unions and Latino Voters: 5 Takeaways From the N.Y.C. Mayor’s RaceEric Adams won three big labor union endorsements, confirming his status as a top contender, and Loree Sutton dropped out of the race.Eric Adams is lining up coveted labor union endorsements.Credit…Michael M. Santiago/Getty ImagesEmma G. Fitzsimmons, Dana Rubinstein, Andy Newman and March 15, 2021Updated 10:56 a.m. ETLabor leaders are throwing their weight behind Eric Adams in the New York City mayoral race.Mr. Adams, the Brooklyn borough president, has won three major labor endorsements in the past two weeks, cementing his status as one of the top candidates in the crowded Democratic primary field.As Mr. Adams rose, Loree Sutton, one of the first women to join the race, dropped out, and the campaigns pushed to qualify for public matching funds. Andrew Yang, the former presidential candidate, announced over the weekend that he had raised an impressive fund-raising haul.Here is what you need to know:Adams wins key labor endorsements.Mr. Adams is making the case that he is the candidate for working-class New Yorkers.“We are building a blue-collar coalition that will deliver results for the New Yorkers who need them the most,” Mr. Adams said last week.He has received support from three unions: Local 32BJ of the Service Employees International Union, which represents about 85,000 building workers in New York; the Hotel Trades Council, which has nearly 40,000 members in the hotel and gaming industry; and the District Council 37 Executive Board, the city’s largest public employees union, representing 150,000 members and 50,000 retirees.The string of endorsements shows that some Democrats believe Mr. Adams has the best chance of beating Mr. Yang, who has been leading the field in recent polls.While Mr. Adams has secured some of the city’s most coveted labor endorsements, Maya Wiley, a former counsel to Mayor Bill de Blasio, was recently endorsed by another major union, Local 1199 of the S.E.I.U. The powerful United Federation of Teachers has not yet picked a candidate.Scott Stringer, the New York City comptroller, had been a contender for the 32BJ endorsement, according to the union president, Kyle Bragg.“But this is more than just about friendships,” Mr. Bragg said, adding that the union had to consider who had “the strongest path to victory.”Sutton’s long-shot bid comes to an end.Loree Sutton, left, has left the mayoral race.Credit…Jose A. Alvarado Jr. for The New York TimesFor Loree Sutton, the retired Army brigadier general who withdrew from the mayor’s race on Wednesday, the turning point came in late February when a state judge rejected a lawsuit seeking to limit in-person petition-gathering during the coronavirus pandemic.Candidates must gather a certain number of signatures in person in order to get their names on the ballot.“I just would not go out and do in-person petition-gathering under these circumstances,” Ms. Sutton said. It was, she said, a matter of “public health principle.”Her mayoral bid was always a long shot. The former commissioner for the city’s Department of Veterans’ Services, she had little in the way of political experience or name recognition. She was running as a law-and-order moderate in a Democratic primary that tilts left.Some advisers had encouraged her to run as a Republican, but doing so would have felt inauthentic, she said. Centrism, she argues, remains an essential part of the Democratic Party.But early on there were signs that her brand of moderation would be unwelcome.She was excluded from an early Democratic forum because she had argued that protesters should be required to obtain city permits.She campaigned on the importance of public safety and rejected calls to defund the police, a posture that seemed out of step with many of her competitors.“Some of the worst atrocities in human history have taken place under the misconception that somehow we can create a utopian society,” she said.In the end, Ms. Sutton pulled out of the race, having raised only $200,000.She has yet to decide whom she will endorse, but she was complimentary of Kathryn Garcia, the former Sanitation Department commissioner, who is running as a pragmatist. And she has not ruled out running for office again someday.“It’s the journey of a lifetime,” she said.Candidates debate how to fix public housing.Kathryn Garcia argues that private management of some buildings in the city’s public housing system can be effective.Credit…Brendan Mcdermid/ReutersAt a mayoral forum on housing on Thursday, a tenant leader at a city public-housing complex, Damaris Reyes, challenged the candidates: “I want to know if you will commit to preservation of public housing, and how you will repair trust and empower resident decision making.”The 175,000 apartments in the city’s public housing system have been sliding into disrepair for decades, with the price tag for replacing leaky roofs, old heating systems, broken elevators and other problems now estimated at $30 billion to $40 billion.But the city’s proposal to fund the repairs by using a program that would hand over management of tens of thousands of apartments to private developers has been greeted with skepticism. Many New York City Housing Authority residents fear their apartments would be privatized, leading to rent increases and evictions.At the housing forum, hosted by the local news channel NY1, two candidates with experience running housing systems said the city’s plans provided a realistic platform.Ms. Garcia, who served as interim commissioner of NYCHA in 2019, said the blueprint would let the city leverage federal money that was already available. She said she could win over skeptics by taking them on tours of the Ocean Bay complex in Queens, where a private landlord has been making repairs. “You know who the best spokespeople are?” she asked. “The people who have actually had their apartments renovated.”Shaun Donovan, who ran the city’s department of housing preservation under Mayor Michael R. Bloomberg and who served as President Barack Obama’s commissioner of housing and urban development, said that partnering with the federal government provided “the only pathway where we can truly get to scale.”Mr. Donovan’s plan also calls for the city to kick in $2 billion a year and includes job-training programs for NYCHA residents who would be hired to do much of the work, he said. Mr. Yang has promoted his own $48 billion — and entirely federally funded — “green new deal” for NYCHA. To combat NYCHA residents’ “massive trust deficit,” the city should “make NYCHA residents the majority of the board of NYCHA itself,” he has said.Public money comes rolling in.Andrew Yang has been a potent fund-raiser.Credit…Mark Lennihan/Associated PressSix candidates now say they have qualified for public matching funds, and a seventh may qualify soon.At the latest donation deadline last week, Mr. Yang proved that he is a strong fund-raiser. He reported that he had met the matching-funds threshold by raising more than $2.1 million from 15,600 individual donors in the 57 days that he has been in the race. Mr. Yang’s campaign said it expects to have raised $6.5 million once public dollars are received.“With 100 days left, we have built the foundation and energy to win,” Mr. Yang’s campaign managers said in a statement.To qualify for public matching funds, a candidate must raise $250,000 from at least 1,000 New York City residents. Those donations are matched at either an $8 to $1 rate or $6 to $1 rate, depending on which plan the campaign chose for a maximum of $1,400 to $2,000 per contributor.Mr. Donovan reported meeting the threshold, which would bring his total raised to $4 million. Ms. Garcia reported meeting the threshold by raising over $300,000 in matchable contributions. Dianne Morales, a former nonprofit executive, said Monday she had qualified for matching funds as well, raising about $320,000 in matchable contributions.The fund-raising leaders have also continued to rake in public dollars. Mr. Adams and Mr. Stringer, the only two candidates who have received matching funds so far, reported having raised a total of more than $9 million each once matching funds were factored in. Ms. Wiley, who announced that she had met the threshold last period before an audit from the Campaign Finance Board determined that she had not, declined to release fund-raising figures. Her campaign was waiting on a ruling Monday from the board.Raymond J. McGuire, a former banking executive who shook up the race when he raised $5 million in three months, is not participating in the public funds program. His campaign said he had raised another $2.6 million since the last filing period.According to campaign finance rules, if a nonparticipating candidate raises or spends more than half of the $7.3 million spending limit, the spending cap could be increased by 50 percent. Matthew Sollars, a spokesman for the board, said a determination on an increased spending cap would be made late next month.A candidate looks for the Latino vote.Scott Stringer, the city comptroller, has a Puerto Rican stepfather.Credit…Richard Drew/Associated PressLittle known fact about Scott Stringer, who is white and Jewish: His stepfather moved to New York from Puerto Rico as a toddler, his stepfamily is Latino and, partly on that basis, he hopes to win over Latino voters in the mayoral election.“Buenos días a todos,” Mr. Stringer said on Sunday in Upper Manhattan, as he formally kicked off his “Latino agenda,” not far from the Washington Heights neighborhood where he grew up. His stepfamily joined him and lauded his record, character and intelligence. “Scott is simpático,” said Carlos Cuevas, Mr. Stringer’s stepbrother, a lawyer.Mr. Stringer’s effort to highlight his family to identify with a particular constituency is not a novel one. Mr. de Blasio relied heavily on his African-American wife and biracial children in his 2013 run for mayor. At a forum about Jewish issues, Ms. Wiley, whose father was African-American and mother was white, made a point of noting that her partner is Jewish and the son of Holocaust survivors.The Latino vote — which is far from monolithic — is coveted, representing about 20 percent of the New York City electorate.The mayor’s race has several candidates of Latino descent: Ms. Morales and Carlos Menchaca, a councilman from Brooklyn, both of whom are Democrats, and Fernando Mateo, a Republican. None responded to requests for comment on Mr. Stringer’s Latino voter push.The same day Mr. Stringer was rolling out his agenda, his competitor Mr. Yang made his pitch to Spanish-language viewers of Telemundo.AdvertisementContinue reading the main story More

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    Trump Faithful Asked to Donate $3 Million to Buy His Boyhood Home

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