Police Conduct Search and Seizure at LH Headquarters and Residences of Executives over 'New Town Speculation Allegations' (Comprehensive)

Search of Business Headquarters Ends This Afternoon
13 Employees Suspected of Speculation Banned from Leaving Country

On the afternoon of the 9th, the Anti-Corruption Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency completed a search and seizure related to the 'LH Employees' New Town Speculation Allegations' at the Korea Land and Housing Corporation (LH) Gwangmyeong-Siheung Project Headquarters in Gwangmyeong, Gyeonggi Province, and is moving the seized items.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] The police investigating allegations of speculation by employees of Korea Land and Housing Corporation (LH) in planned new town areas launched a forced investigation by conducting searches and seizures at three locations, including the LH headquarters, on the 9th.

The Anti-Corruption Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency began searches and seizures at 9:30 a.m. at three locations: LH headquarters in Jinju, Gyeongnam Province; Gwacheon-Uiwang Business Headquarters in Gwacheon, Gyeonggi Province; and Gwangmyeong-Siheung Business Headquarters in Gwangmyeong, Gyeonggi Province, as well as residences of 13 current LH employees suspected of speculation.

The police concluded the search and seizure at the Gwacheon-Uiwang Business Headquarters at around 11:50 a.m., 2 hours and 20 minutes after starting, and completed the searches at the Gwangmyeong branch and Gwacheon branch by 3 p.m. However, some searches related to certain business headquarters are reported to still be ongoing.

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

Additionally, the police have imposed travel bans on the 13 LH employees suspected of speculation.

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 being closely related to this investigation. In particular, by searching the residences of the employees under suspicion and securing their mobile phones and communication records, it is expected that the investigation into the use of internal information or allegations of proxy transactions will accelerate.

The allegations were raised through a press conference on the 2nd of this month by the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun), and on the same day, the civic group Halbindan filed a complaint, prompting the police investigation. Notably, this search and seizure was conducted just one day after Nam Gu-jun, head of the National Investigation Headquarters, reported the ‘Special Investigation Unit Operation Plan for Real Estate Speculation’ to Prime Minister Chung Sye-kyun.

As the LH speculation allegations expanded, the National Investigation Headquarters of the National Police Agency formed a special investigation unit led by the head of the investigation bureau, comprising the Anti-Corruption Investigation Division, Major Crime Investigation Division, Crime Intelligence Division, and three provincial police agencies?Gyeonggi Southern Provincial Police Agency, Gyeonggi Northern Provincial Police Agency, and Incheon Police Agency?that have jurisdiction over the ‘3rd New Town planned sites,’ to conduct the investigation.

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