Jo Eung-cheon "LH Allegations, Even If Public Opinion Demands It Due to Prosecution-Police Investigation Authority Adjustment, Direct Prosecution Investigation Is Not Possible"

Hataekyung "Excluding Real Estate from the Six Major Crimes, Will the Public Accept It?"

Cho Eung-cheon, Member of the Democratic Party of Korea. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] On the 7th, Cho Eung-cheon, a member of the Democratic Party of Korea, said regarding the '3rd New Town speculation allegations' involving employees of the Korea Land and Housing Corporation (LH), "No matter how much public opinion demands it, the law and system have been changed so that the prosecution cannot be deployed to directly investigate this case."

In a post on his Facebook on the same day, Rep. Cho said, "With the adjustment of investigative authority between the prosecution and police, the crimes for which prosecutors can initiate investigations have been clearly and restrictively defined, so expanding the prosecution's direct investigation authority to other crimes does not align with the purpose of the legal amendment."

Previously, Rep. Cho, a former prosecutor, voiced opposition when the ruling party forcibly passed the adjustment of investigative authority between the prosecution and police through the fast-track process in 2019. With the adjustment taking effect this year, the scope of direct investigations by the prosecution has been limited to six major crimes: corruption, economy, public officials, elections, defense industry, and large-scale disasters.

Regarding this, Rep. Cho stated, "For real estate speculation using internal information by LH employees, the 'Special Act on Public Housing' and the 'Korea Land and Housing Corporation Act' can be applied," adding, "Based on the facts revealed so far, the identity of the actor (subject) and the nature of the crime do not fall under the six major crimes specified in the 'Regulations on the Scope of Crimes for Prosecutors to Initiate Investigations'."

He further pointed out, "Real estate crimes infringe on the housing stability of all citizens, kick away the ladder of housing opportunity, and furthermore, by embezzling taxpayers' money, shake the foundation of the community's existence, making it a serious crime," and criticized, "Engaging in political responsibility disputes over this will not help resolve public suspicions or solve housing issues."

Finally, Rep. Cho promised, "As the ruling party's Land, Infrastructure and Transport Committee whip, I pledge to fulfill my responsibilities throughout all processes, including uncovering the truth, resolving suspicions, punishing those involved, and preparing measures to prevent recurrence."

Ha Tae-kyung, member of the People Power Party. [Image source=Yonhap News]

Meanwhile, regarding Rep. Cho's remarks, Ha Tae-kyung of the People Power Party said on his Facebook, "The details of what constitutes the six major crimes are to be specified in the Presidential Decree," and criticized, "Everyone thinks this case is one of the six major crimes, or at least the biggest corruption crime threatening people's livelihoods among public officials. But only the president thought differently."

He continued, "The president has made the scope of the six major crimes very narrow," and criticized, "As a result, the prosecution's hands and feet were tied in investigating large-scale public official speculation cases like this LH incident, and the damage will be borne entirely by the people."

Ha also raised his voice, saying, "If the president's true intention is to root out speculative forces, the enforcement decree should be amended immediately to mobilize the prosecution's specialized investigative power to eradicate public officials' speculative crimes."

Finally, he said, "While violations of the Capital Markets Act banning stock trading using undisclosed information are included among the six major crimes, which citizen would accept that real estate information is excluded?" and urged, "I call for the president's swift decision."

This content was produced with the assistance of AI translation services.