LH Scandal, Prosecutors Reduced to Bystanders... Attend Interagency Meeting 8 Days After Allegations Raised

Prime Minister Chung Sye-kyun is speaking at an emergency meeting of related agencies convened on the 10th at the Government Seoul Office to investigate allegations of speculation by employees of Korea Land and Housing Corporation (LH) in the 3rd new town development project.
[Image source=Yonhap News]

[Asia Economy reporters Son Seon-hee (Sejong), Lee Hyun-joo, Park Joon-i] Regarding the land speculation scandal involving employees of Korea Land and Housing Corporation (LH), the prosecution attended a government-wide meeting of related agencies convened on the 10th for the first time. This came eight days after suspicions were raised. As public outrage over this incident, which shook the foundation of a ‘fair economy,’ spread to distrust in the government’s own investigation and police investigation, the prosecution was belatedly called in. Although some prosecutors are expected to join the government investigation team, their role is likely to be minimal, leading to criticism that the meeting was convened merely to save face for a fair investigation. The opposition party is strongly demanding a prosecution investigation, escalating conflicts between the ruling and opposition parties.

Prime Minister Chung Sye-kyun held an emergency meeting of related agencies regarding the LH scandal at the Government Complex Seoul that morning. Attendees included Park Beom-gye, Minister of Justice; Jeon Hae-cheol, Minister of the Interior and Safety; Kim Chang-ryong, Commissioner of the National Police Agency; Cho Nam-gwan, Acting Prosecutor General (Deputy Prosecutor General); and Koo Yoon-cheol, Director of the Office for Government Policy Coordination.

Attention was focused on what role the prosecution would play in the government’s joint investigation headquarters with Acting Prosecutor General Cho attending, but Prime Minister Chung made it clear that the meeting was to discuss cooperation measures between the prosecution and police. He reaffirmed that under the separation of investigative powers, the police conduct investigations while the prosecution handles indictments and prosecutions. In his opening remarks, Prime Minister Chung said, "Regarding the speculation allegations involving LH executives and public officials in new towns, the entire judicial process?from investigation and prosecution to indictment and maintenance of prosecution?must proceed without any gaps," emphasizing, "Especially, organic communication and coordination between the police in charge of investigations and the prosecution responsible for requesting warrants and filing and maintaining prosecutions are of utmost importance."

On the 10th, Cho Nam-gwan, Deputy Prosecutor General of the Supreme Prosecutors' Office, is taking notes while listening to Prime Minister Chung Sye-kyun's remarks during an emergency meeting with related agencies to investigate allegations of speculation by Korea Land and Housing Corporation (LH) employees in the 3rd new town development at the Government Seoul Office. March 10, 2021.
Photo by Yonhap News

The opposition party is protesting. The People Power Party’s Special Committee on Real Estate Speculation held its first meeting that morning and urged a prosecution investigation into the case. They argued that if the prosecution’s investigative scope, reduced by the adjustment of investigative authority between the police and prosecution, is interpreted broadly, the prosecution can intervene directly. Kwon Seong-dong, chairman of the special committee, criticized the government’s intention to minimize the prosecution’s role in the investigation, saying in a phone call, "Dispatching prosecutors does not mean the prosecution is directly investigating." On the same day, Joo Ho-young, floor leader of the People Power Party, appeared on the radio and asserted, "Within the government, the Board of Audit and Inspection should immediately start an audit, and the investigation should not be conducted by the National Police Agency’s Investigation Headquarters or the Special Investigation Headquarters, but the prosecution, which has experience and know-how, should be involved in some way."

If circumstances confirming the involvement of high-ranking public officials emerge during the Special Investigation Headquarters’ investigation, the prosecution will have sufficient legal grounds to intervene in this case. The revised Prosecutors’ Office Act stipulates that the prosecution can initiate an investigation if there is suspicion of crimes committed by public officials of grade 4 or higher or corruption crimes involving bribes of 30 million won or more.

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