Regime's Fate at Stake... Police Forced Investigation into LH Speculation Allegations

4·7 By-Election Becomes a Game-Changing Variable... Prime Minister Jeong Announces "Establishment of Government Joint Special Investigation Headquarters"

[Asia Economy Reporters Ryu Jeong-min and Son Seon-hee] Allegations of real estate speculation by employees of Korea Land and Housing Corporation (LH) are shaking the foundation of the Moon Jae-in administration from the ground up. This issue, which touches the "people's wrath," has explosive power enough to change the fate of the regime. It could significantly affect not only the upcoming 'April 7 by-elections' less than a month away but also the presidential election one year from now.

In fact, the LH scandal has emerged as a critical issue that accelerates the Moon Jae-in administration's lame-duck period and could determine the overall success or failure of the regime as the worst corruption and misconduct case. Prime Minister Chung Sye-kyun instructed Nam Gu-jun, head of the National Police Agency's National Investigation Headquarters, to establish a government joint special investigation headquarters to thoroughly investigate suspicions related to the development of the 3rd new town for faster investigation speed.

First, the government plans to request an investigation by the police regarding this case. This is in response to internal and external criticism that the government's own investigation has clear limitations. On the morning of the 8th at 10 a.m., Prime Minister Chung met with Director Nam at the Government Seoul Office to receive a report on the investigation status related to the LH scandal and urged, "Once the investigation results are notified, conduct a thorough investigation without delay."

[Image source=Yonhap News]

The Prime Minister's Office's joint investigation team, directly under the Prime Minister within the Office for Government Policy Coordination, is expected to announce the first investigation results around the 11th, and based on this, the government expressed its intention to entrust the investigation to the police. The National Investigation Headquarters has already established a 'Special Investigation Unit for Real Estate Speculation Offenders' and is investigating this case separately from the government investigation team. Once the investigation team hands over related materials, the investigation is expected to intensify. Regarding the establishment of the government joint special investigation headquarters, a senior official from the Prime Minister's Office said, "It reflects the Prime Minister's intention that the special unit's scale should be expanded for faster investigation."

Even though the government's first investigation results have not yet been released, the Prime Minister's expression of such determination seems to be driven by a sense of crisis due to the intense public anger. The government's investigation targets include all employees of the Ministry of Land, Infrastructure and Transport (headquarters and regional offices), public enterprises, officials in charge of new towns in the relevant local governments, and their spouses and direct relatives. Minister Byeon Chang-heum of the Ministry of Land, who previously served as LH president, is naturally included.

However, this is limited to those who have submitted a 'Consent Form for Collection and Use of Personal Information.' Even if suspects of illegal acts are identified through the government's own investigation, if the individuals do not cooperate, there is no means to continue the investigation.

[Image source=Yonhap News]

This is why a transition to compulsory investigation through investigative agencies is necessary. Multiple ruling party officials reported that during a high-level ruling party-government-Cheong Wa Dae meeting the previous evening, there was consensus that the government's own investigation has clear limitations. However, doubts remain about whether the investigation results by the police's National Investigation Headquarters can be trusted, rather than those by the prosecution or the Board of Audit and Inspection. This incident is the first case the National Investigation Headquarters has handled since the government's adjustment of prosecution and police investigative authority.

The Blue House pledges a response free of any suspicion, but regardless of the government's investigation results, it seems difficult to quell public anger. Professor Lee Jun-han of Incheon National University's Department of Political Science and Diplomacy said, "Due to the frame of unfairness, it could significantly affect not only people in their 20s and 30s but also those in their 40s and 50s suffering from real estate issues," adding, "The public will not straightforwardly believe the investigation results, and once the election season begins, it will be a negative factor for the ruling party."

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