'Public Sector Distrust' Spreads... Comprehensive Investigation Expansion Inevitable

Public Distrust in the Public Service 'Spreading Like Wildfire'
First Survey Results Released Today... "Just the First Step"
Additional Allegations Against Public Officials and Lawmakers Emerge
'War on Crime-Level' Comprehensive Investigation Expansion Needed

Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport is bowing in greeting before giving a briefing at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly in Yeouido, Seoul, on the afternoon of the 9th. (Photo by Yonhap News)

[Asia Economy reporters Moon Jiwon and Ryu Taemin] Public distrust toward the civil service, triggered by speculation allegations involving 13 employees of Korea Land and Housing Corporation (LH) in the Gwangmyeong-Siheung district, is spreading rapidly. Since the initial exposure by the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society, additional suspected cases of preemptive speculation by politicians, public officials, and public enterprise employees have emerged, raising suspicions that most development projects labeled as ‘public’ have become targets for speculation.

Although the government announced the first investigation results on the afternoon of the 11th regarding about 14,500 employees of the Ministry of Land, Infrastructure and Transport (MOLIT) and LH, industry insiders point out that regaining lost trust has become difficult. Given that the public’s suspicion that similar speculation cases exist widely across other public sectors has solidified, there is an analysis that a comprehensive investigation by the government’s joint special investigation headquarters (JSIH) is inevitable regardless of the current investigation results.

'Swift and Decisive' First Investigation Results... Trustworthiness 'Questionable'

According to the government on the 11th, Prime Minister Chung Sye-kyun held a regular briefing at the Government Seoul Office in the afternoon to announce the first investigation results by the government joint investigation team into MOLIT and LH employees. However, public opinion already suggests that trust is hard to restore with just the first investigation results. The main reason is that the investigation targets and scope were limited based on the government’s arbitrary criteria.

Online, many point out the limitations of the speculation investigation involving MOLIT officials in six 3rd phase new towns including Gwangmyeong-Siheung, Gwacheon Gwacheon district, and Ansan Jangsang district, calling for the expansion of compulsory investigations to the entire public service sector.

Similar cases have been found not only in LH but also among lawmakers and metropolitan area public officials, supporting these claims. Gwangmyeong City revealed that it identified six affiliated public officials who purchased land in the planned Gwangmyeong-Siheung new town through its own investigation the day before, and Siheung City disclosed that eight public officials acquired land within the new town site.

In Gyeonggi Province’s Siheung and Hanam cities, it was confirmed that a city council member acquired land in the new town candidate site under a family member’s name, and it was revealed that the mother of Yang Yi-won-young, a Democratic Party lawmaker, purchased land near Gahak-dong, Gwangmyeong in 2019. Notably, land transaction volumes in the five 3rd phase new town sites surged 2 to 4 times just before the government’s new town designation announcement, increasing the likelihood of prior information leaks. Additionally, there have been numerous reports that the names of 3rd phase new town landowners and LH employees are identical.

Investigation Expansion Inevitable... Government Trust Recovery Uncertain

As suspicions grow that the allegations raised so far are just the tip of the iceberg, calls for expanding the investigation are increasing. Posts demanding investigations in their own regions are appearing one after another on the Ministry of Land, Infrastructure and Transport’s public opinion forum, the Blue House’s petition board, and real estate-related online communities.

One petitioner on the Blue House petition board argued, "The problem is more serious in Sejong City," stating, "Sejong City is a newly constructed city and is several times larger than the Gwangmyeong-Siheung new town, so LH employees may have had more opportunities for illicit gains." A citizen posting on the public opinion forum demanded, "The price of newly built apartments in Geomdan New Town is around 700 to 800 million KRW. This area had many speculation suspicions involving public officials early in the sales phase. The entire investigation should include pre-sale rights of newly built apartments in nationally prominent areas."

Therefore, some voices call for an all-encompassing investigation into public officials’ speculation allegations without predetermined investigation scope or targets, similar to former President Roh Tae-woo’s 1990 declaration of a ‘War on Crime’ to eradicate violent organizations.

Ahn Cheol-soo, the People Power Party’s Seoul mayoral candidate, also emphasized at the People Party’s supreme council meeting on the same day, "Whether through a parliamentary audit or prosecution investigation, all possible means must be mobilized for a thorough fact-finding and strong punishment."

Professor Seo Jin-hyung of Gyeongin Women’s University (President of the Korean Real Estate Society) explained, "To gain public trust, the scope of the full survey should be expanded, and for new towns, nearby areas should also be investigated. The scope should be extended to include not only ordinary public officials and local public enterprises but also their siblings, and the sources of funds for real estate purchases must be examined."

770-Person 'JSIH' Launched

The government has announced plans to form a 770-person 'Government Joint Special Investigation Headquarters (JSIH)' to thoroughly investigate real estate speculation allegations. Police departments from 18 cities and provinces nationwide will be deployed to the JSIH, and specialized personnel from the National Tax Service and the Financial Services Commission will also be dispatched.

With the scale expanded to regional police departments, the investigation scope is likely to broaden nationwide. In fact, the JSIH is reportedly conducting internal investigations on cases identified through its own crime information collection beyond just LH employees. However, since the investigation scope remains very broad and there are concerns that the government might reduce the investigation to push forward the 2.4 housing supply plan, opinions suggest that the investigation process should be closely monitored.

Seo Seong-min, a lawyer from the Lawyers for a Democratic Society’s Committee on People’s Livelihood and Economy, said, "If the investigation is centered on the JSIH, relatives of the perpetrators should also be investigated for the public to accept it. Since the investigation of areas adjacent to new towns is very broad, it may be conducted comprehensively, so it might be necessary to expand the scope based on clues obtained through the investigation."

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