Government: "Land speculation allegations under investigation since December 2013"... Including Park Geun-hye administration (Update)

Choi Chang-won, the First Deputy Minister of the Office for Government Policy Coordination, is answering reporters' questions after finishing a briefing on the establishment of the Government Joint Special Investigation Headquarters (Special Investigation Headquarters) and the investigation related to the speculation allegations of Korea Land and Housing Corporation (LH) employees regarding the 3rd New Towns, at the Government Seoul Office Building on the afternoon of the 8th.
[Photo by Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] On the 8th, the government announced that it will investigate land transaction records from 'December 2013 onward,' which is five years prior to the first announcement of the 3rd New Town project (December 2018), in relation to allegations of land speculation by employees of Korea Land and Housing Corporation (LH). This means that the investigation into the 'LH scandal' will cover not only the current administration but also the Park Geun-hye administration.

Choi Chang-won, the First Vice Minister of the Office for Government Policy Coordination and head of the government joint investigation team, said in a press briefing at the Government Complex Seoul that day, when asked about the scope of the investigation, "We are verifying transaction records from December 2013 onward." The intention is to examine the possibility of speculation using insider information not only at the time of the new town district designation announcement but also during the prior review process.

Choi stated, "We plan to announce the results of the first investigation targeting Ministry of Land, Infrastructure and Transport and LH employees within this week," adding, "Spouses and direct relatives of these individuals will be subject to a second investigation." He further explained, "There are approximately 23,000 direct public officials, and some local governments plan to include all employees (even those not involved in land-related work), so the number could increase. Including spouses and family members, it could reach 100,000 people."

The initial investigation targets approximately 23,000 people, including about 4,500 Ministry of Land, Infrastructure and Transport employees, around 9,900 LH employees, about 6,000 local government employees, and roughly 3,000 employees of local public enterprises.

However, it was noted that there are practical difficulties for the government to investigate these individuals due to issues such as the use of personal information. Choi said, "Among the first investigation targets (current public officials, etc.), there have been no special cases of refusal to cooperate," but added, "For the second investigation targets such as spouses and direct relatives, consent forms for information provision must be obtained step-by-step, and there may be various cases of refusal." Realistically, if individuals do not cooperate with the investigation, the government has no means to enforce it.

In response, Choi said, "We plan to immediately request an investigation by the government joint special investigation headquarters to be established within the National Police Agency's National Investigation Headquarters for suspicious transactions."

Regarding the background of entrusting the investigation of the LH scandal to the police rather than the prosecution, Choi explained, "Due to the adjustment of investigative authority between the prosecution and police, real estate transactions are classified as 'public livelihood crimes,' which fall under the police's investigative jurisdiction," adding, "Since the recently launched National Investigation Headquarters will be handling this large-scale case for the first time, it will serve as a touchstone to demonstrate the police's investigative capabilities."

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