LH speculation allegations, search and seizure after a week... Citizens express frustration over "belated investigation"

After Minbyun's Allegations, It Took a Week for the Search and Seizure
Investigation Focuses on Whether Internal Information Was Used for Land Purchase
Citizens Express Outrage Over "Showcase Investigation"

Entrance of the Korea Land and Housing Corporation (LH) headquarters in Chungmugong-dong, Jinju-si, Gyeongnam. / Photo by Yonhap News

[Asia Economy Reporter Kang Juhee] On the 9th, the police conducted a search and seizure at the Korea Land and Housing Corporation (LH) headquarters in Jinju, Gyeongnam, as well as the homes of executives and employees suspected of speculation related to new town sites. However, the forced investigation was carried out only a week after the allegations surfaced, drawing criticism as a "belated investigation."

The Anti-Corruption Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency simultaneously conducted search and seizure operations from 9:30 a.m. at the LH headquarters, Gwacheon-Uiwang Business Headquarters, Gwangmyeong-Siheung Business Headquarters, and the residences of 13 suspects. Travel bans were also imposed on the 13 suspects. A total of 67 investigators were deployed.

The Gwacheon-Uiwang Business Headquarters is where three employees suspected of speculation worked, and the Gwangmyeong-Siheung Business Headquarters is the organization responsible for the Gwangmyeong-Siheung 3rd New Town project involved in this issue.

Through the search and seizure, the police secured documents related to the selection process of the 3rd New Town development sites, compensation-related papers, suspects’ personal mobile phones, work computers, and real estate transaction records.

The police are particularly focusing on obtaining materials to determine whether LH employees used internal information to purchase land in the new town planned areas.

The police stated that they plan to conduct the investigation swiftly and strictly according to law and principles through this search and seizure.

On the afternoon of the 9th, in front 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 under suspicion of land speculation in the new town area.
Photo by Yonhap News

However, among citizens, there are considerable voices of skepticism regarding this police investigation. It is criticized as a belated investigation conducted a week after the speculation allegations surfaced. Due to the delayed search and seizure, some express concerns about potential evidence tampering.

A 20-something office worker, Mr. A, said, "The speculation allegations arose on the 2nd, but the investigation only started a week later, so I don’t understand what evidence they expect to find now," adding, "It’s like announcing an investigation but giving a week for evidence to be destroyed."

Another office worker, Mr. Kim (31), said, "This investigation also seems likely to fizzle out due to lack of evidence," and lamented, "What can be revealed through a formal, showy investigation? I no longer have any expectations."

Meanwhile, on the 2nd, organizations such as People’s Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun) held a press conference alleging that about 10 LH employees speculated by purchasing land in the Gwangmyeong-Siheung district for the 3rd New Town project before its official designation announcement, spending around 10 billion won.

Through analysis of land registers, People’s Solidarity and Minbyun confirmed that from April 2018 to June last year, 14 LH employees and their spouses and families purchased a total of 10 parcels of land measuring 23,028㎡ (approximately 7,000 pyeong) for about 10 billion won.

As the speculation controversy spread, the National Investigation Headquarters (NIH) formed a special investigation team led by the head of the NIH Investigation Bureau. The team includes 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.