Jeong Sye-gyun: "LH Public Officials' Speculation Is a Betrayal of the People... They Must Be Ruined" (Update)

Police Agency Special Investigation Unit Expanded and Reorganized into 'Government Joint Special Investigation Headquarters' Including National Tax Service and Financial Services Commission

Prime Minister Chung Sye-kyun (first from the left) is meeting Nam Gu-jun, the inaugural head of the National Forensic Service, who was appointed on the 8th at the Government Seoul Office. March 8, 2021.
[Photo by Yonhap News]

[Asia Economy Reporter Son Sun-hee] Prime Minister Chung Sye-kyun strongly criticized the allegations of land speculation by employees of Korea Land and Housing Corporation (LH) on the 8th, calling it "a betrayal of the people before being illegal" and stating, "We must investigate with a determination to the death and ruin the corrupt perpetrators." He also ordered the expansion and reorganization of the special investigation team currently established at the National Police Agency’s National Investigation Headquarters into a 'Government Joint Special Investigation Headquarters' including related agencies such as the National Tax Service and the Financial Services Commission.

At 10 a.m. that day, Prime Minister Chung received a report on the 'Special Investigation Team Operation Plan for Real Estate Speculation' from Nam Gu-jun, head of the National Investigation Headquarters, at the Government Seoul Office. He said, "The speculation allegations by public officials, including LH executives and employees, in new towns created for the stability of ordinary citizens’ housing directly violate the founding spirit of the institution." Present at the meeting were Nam, Gu Yoon-cheol, Director of the Office for Government Policy Coordination, and Choi Chang-won, First Deputy Minister of the Prime Minister’s Office, who is also head of the Government Joint Investigation Team.

Prime Minister Chung instructed Nam, head of the National Investigation Headquarters, to "thoroughly investigate without delay so that not even a shred of suspicion remains once the Government Joint Investigation Team’s results are reported." The Government Joint Investigation Team is expected to announce the first investigation results targeting the Ministry of Land, Infrastructure and Transport and LH employees as early as the 11th. Based on the investigation results, they plan to immediately request an investigation by the National Investigation Headquarters.

In addition, Prime Minister Chung ordered the expansion and reorganization of the special investigation team currently established at the National Investigation Headquarters into a 'Government Joint Special Investigation Headquarters' including related agencies such as the National Tax Service and the Financial Services Commission. The current joint investigation team under the Prime Minister’s Office lacks authority to investigate or probe private parties, limiting its ability to uncover illegal acts such as nominee transactions and unregistered resale. Prime Minister Chung repeatedly urged, "Thoroughly investigate all illegal and illicit speculative activities, including those involving public officials, in development areas."

The government also decided to strictly respond to market disruption acts such as false transaction reports followed by cancellations. The Ministry of Land, Infrastructure and Transport will conduct a detailed analysis of such cases, and the National Investigation Headquarters will start investigations based on the results.

Prime Minister Chung told Nam, head of the National Investigation Headquarters, "Cases related to real estate speculation and the livelihood economy are core investigation areas for the police under the adjustment of prosecution and police investigation rights and will be a measure of the police’s investigative capabilities." He added, "Keep in mind that this is a test to show the investigative capabilities of the newly launched National Investigation Headquarters to the public, and focus all investigative resources with extraordinary determination." He also instructed Choi, head of the investigation team (First Deputy Minister of the Office for Government Policy Coordination), to "clearly inform the public that participation by the Ministry of Land, Infrastructure and Transport and others in the investigation process is limited to cooperation in querying the real estate transaction electronic network to avoid misunderstandings."

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