Kooksoobon "Investigating All Development Sites Nationwide... Will Take Strong Measures Against Speculative Activities"

Launch of Government Joint Special Investigation Headquarters
770 Personnel from 18 City and Provincial Police Agencies
Personnel Dispatched from National Tax Service and Financial Services Commission... Prosecution Not Included

[Asia Economy Reporter Song Seung-yoon] The Government Joint Special Investigation Headquarters for Real Estate Speculators (Special Investigation Headquarters), formed to investigate allegations of speculation by employees of Korea Land and Housing Corporation (LH) in planned new town areas, has been organized with a workforce of 770 personnel and has begun full-scale operations. The Special Investigation Headquarters plans to scrutinize not only the LH speculation allegations but also suspected speculative areas across local governments nationwide.

The National Investigation Headquarters (NIH) of the National Police Agency announced on the 10th that it has established the Government Joint Special Investigation Headquarters to investigate the LH land speculation allegations. The Special Investigation Headquarters is composed of 770 personnel from 18 city and provincial police agencies, with Nam Gu-jun, head of the NIH, serving as the Special Investigation Headquarters Chief. The investigation is organized into a general team overseeing the investigation, an incident analysis team, a fund analysis team, and a cooperation support team, with the investigation bureau chief acting as the investigation team leader. A reporting center will also be operated to expand the investigation of speculation allegations.

Personnel will also be dispatched from the National Tax Service and the Financial Services Commission. While the exact number of dispatched personnel is still being coordinated, it is expected to be about 20 from the National Tax Service, 5 to 6 from the Financial Services Commission, and 5 to 6 from the Speculation Analysis Institute under the Ministry of Land, Infrastructure and Transport. The police anticipate that with the addition of personnel from the National Tax Service and the Financial Services Commission, it will be easier to quickly secure data, including tax data analysis and tracing the sources of funds. Prosecutors will not dispatch personnel separately but will cooperate organically for warrant requests, prosecutions, and maintenance.

The main targets of the crackdown are public officials or employees who have improperly used internal information, real estate speculation activities aiming for compensation benefits such as development planned sites nationwide, illegal acquisition of farmland, and overall speculative activities including real estate.

In relation to the LH speculation case, the police are conducting additional internal investigations based on intelligence beyond the 15 individuals already registered as suspects. It is reported that no one has yet been questioned as a suspect.

Regarding calls to conduct a search and seizure of the Ministry of Land, Infrastructure and Transport, the police expressed a somewhat cautious view, stating, "The case is proceeding according to the contents of the complaint, and even if materials are received, due process must be followed."

In response to criticism that the start of the forced investigation was somewhat delayed, the police said, "The complainant's investigation was completed on the 3rd, and a search warrant was applied for on Friday afternoon, which the prosecution immediately requested as well. The warrant was issued on Monday due to the weekend, so it is difficult to agree that the police were late."

From 9:30 a.m. the previous day, the police conducted simultaneous search and seizure operations at the LH headquarters in Jinju, Gyeongnam Province; the Gwacheon-Uiwang Business Headquarters in Gwacheon, Gyeonggi Province; the Gwangmyeong-Siheung Business Headquarters in Incheon; and the residences of 13 current LH employees suspected of speculation. A total of 67 investigators were deployed, and the search and seizure operation concluded around 7:30 p.m., about 10 hours after the Jinju headquarters was last searched.

The police have imposed travel bans on the 13 current employees whose homes were searched. They are being investigated as suspects under the Anti-Corruption Act. In addition to these, two former employees are also under investigation, bringing the total number of suspects in this case to 15. However, it is known that the two former employees were excluded from the search and seizure targets the previous day.

Through the search and seizure, the police are analyzing computers and related electronic documents secured at the Jinju headquarters, as well as the personal mobile phones and PCs of the employees. Once the analysis is complete, the employees will be summoned for questioning. During the search of some employees' homes, land development-related maps were found, and the police are verifying the source of these materials and whether they are related to speculation.

The police are also conducting internal investigations into land transactions in the 3rd new town areas in Incheon and Bucheon, Gyeonggi Province. They are analyzing land transaction records in the Gyeyang New Town, nearby Bucheon Daejang District in Gyeonggi, and the Incheon Geomam Station public housing district area. Additionally, the Northern Gyeonggi Police Agency is investigating a senior public official in Pocheon, Gyeonggi Province, who borrowed several hundred million won to purchase land and buildings near a planned subway station site.

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