Police Search LH... Prime Minister Jeong Apologizes

Searches at Headquarters and 2 Other Locations... 13 Employees Withdrawn
Focus on Securing Evidence to Clarify Use of Internal Information
Ruling and Opposition Parties Urge Prosecutor Participation Excluded from Investigation

On the afternoon of the 9th, reporters and LH officials gathered at the main gate of the Korea Land and Housing Corporation (LH) headquarters in Chungmugong-dong, Jinju-si, Gyeongnam. The police conducted a search and seizure at the LH headquarters, which is suspected of land speculation.
[Image source=Yonhap News]

[Asia Economy Reporters Lee Gwan-ju and Son Seon-hee] The police investigating allegations of speculation by employees of Korea Land and Housing Corporation (LH) in planned new town areas conducted a search and seizure at three locations, including the LH headquarters, on the 9th, initiating a forced investigation.

The Anti-Corruption Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency began search and seizure operations from 9:30 a.m. at three sites: LH headquarters in Jinju, Gyeongnam Province; Gwacheon-Uiwang Project Headquarters in Gwacheon, Gyeonggi Province; and Gwangmyeong-Siheung Project Headquarters in Gwangmyeong, Gyeonggi Province. They are also conducting search and seizure at the residences of 13 current LH employees suspected of speculation. These 13 individuals have been subject to travel bans.

A total of 67 police investigators were deployed for this search and seizure operation. It was reported that three of the employees under suspicion worked at the Gwacheon-Uiwang Project Headquarters. The Gwangmyeong-Siheung Project Headquarters is the organization responsible for the Gwangmyeong-Siheung 3rd New Town project, which is at the center of the controversy.

The police are focusing on securing materials to determine whether LH employees used internal information to purchase land in the planned Gwangmyeong-Siheung new town area. The inclusion of the LH headquarters in this search and seizure is interpreted as closely related to this investigation. Especially, by searching the residences of the suspected employees and securing their mobile phones and communication records, it is expected that the investigation into the use of internal information or suspicions of nominee transactions will accelerate.

The People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun) raised allegations through a press conference on the 2nd of this month, and on the same day, Halbindan filed a complaint, prompting the police investigation. Notably, this action took place just one day after Nam Gu-jun, head of the National Police Agency, reported the ‘Special Task Force Operation Plan for Real Estate Speculation’ to Prime Minister Chung Sye-kyun.

As the LH speculation allegations expanded, the National Police Agency formed a special investigation team led by the head of the investigation bureau, including the Anti-Corruption Investigation Division, Major Crimes Investigation Division, and Crime Intelligence Division, as well as the Gyeonggi Southern, Gyeonggi Northern, and Incheon Police Agencies, which have jurisdiction over the ‘3rd New Town planned sites,’ to conduct the investigation.

However, within political and legal circles, concerns have been raised about the exclusion of the prosecution from the government joint task force and the National Police Agency’s special task force, citing limitations in the investigation. Former Prosecutor General Yoon Seok-youl emphasized the need for a large-scale prosecution investigation, and opposition lawmakers including those from the People Power Party have demanded prosecution participation. Even within the ruling party, lawmaker Lee Sang-min has argued for dispatching prosecutors.

Prime Minister Chung, in his opening remarks at the Cabinet meeting held at the Government Complex Sejong on the same day, said, "I bow my head and apologize to the citizens who must feel disappointment and even betrayal at this shocking news."

Meanwhile, according to materials submitted by the Ministry of Land, Infrastructure and Transport to the National Assembly’s Land, Infrastructure and Transport Committee on the same day, two Ministry employees and eleven LH employees refused to submit consent forms for the provision of personal information for the new town speculation investigation.

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