[Full Text] Prime Minister Jeong Sye-kyun's Announcement on the First Joint Investigation Results of the 'LH Incident'

Prime Minister Chung Sye-kyun is announcing the results of the first comprehensive investigation into LH employees' speculation in new towns at the Government Seoul Office in Jongno-gu, Seoul, on the 11th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Son Sun-hee] Prime Minister Chung Sye-kyun announced the first results of the government joint investigation team’s probe into the allegations of speculative land purchases by employees of Korea Land and Housing Corporation (LH) on the 11th, stating, "We have identified a total of 20 suspected speculators," and added, "We will never forgive the crimes of public corporations and public officials who exploited the dreams and hopes of the people to fill their own pockets."

He also stated, "We will mobilize all current laws and systems to fully recover speculative profits," and "We will swiftly implement institutional improvements and legislative measures in consultation with the National Assembly to ensure that illegal gains are definitely recovered."

Below is the full text of Prime Minister Chung’s announcement.

[Full Text]

I will report the first results of the government’s joint investigation into the LH employee speculation allegations.

Since the March 2nd allegations of speculation in the 3rd New Towns raised by the People’s Solidarity for Participatory Democracy and the Citizens’ Coalition for Economic Justice, the government immediately formed a joint investigation team.

We obtained consent forms for information provision from about 14,000 employees of the Ministry of Land, Infrastructure and Transport and LH, and conducted investigations by cross-checking transaction details and ownership information through the real estate transaction system and the national land information system.

First, please note that the first investigation results announced today were conducted only on LH and Ministry of Land, Infrastructure and Transport employees themselves. The reasons and detailed information will be explained through the materials.

As a result of the investigation, including the suspected speculation cases raised by the People’s Solidarity for Participatory Democracy and the Citizens’ Coalition for Economic Justice, a total of 20 suspected speculators were identified. Land transactions were mainly concentrated in the Gwangmyeong-Siheung district, and suspected speculation cases were also found in other 3rd New Town districts.

This is a clear crime that trampled on the dreams of ordinary citizens who had saved their entire lives’ salaries to buy a home. The public’s anger is justified, and the people’s demand for punishment is reasonable.

The government will never forgive the crimes of public corporations and public officials who exploited the dreams and hopes of the people to fill their own pockets.

Today’s announcement of the LH investigation results is only the beginning. The government will thoroughly investigate all suspicions and allegations, leaving no trace of even the smallest doubt.

Following the Ministry of Land, Infrastructure and Transport and LH employees, investigations will be promptly conducted on employees of Gyeonggi, Incheon, basic local governments, and local public corporations, and as soon as the investigation results are available, they will be immediately referred for prosecution. The investigation areas will be expanded as necessary.

I have concluded that the existing methods and systems can no longer eradicate the greed of public officials. Corruption by public officials must be severely punished by law and strictly controlled and monitored through systems.

Accordingly, I would like to express the government’s determination to eradicate speculative acts in the public sector as follows.

First, all suspicions of speculation, including transactions under false names, will be thoroughly investigated by the newly established government joint special investigation headquarters, and illegal acts will be punished without exception.

In particular, not only the current investigation results but also to ensure swift investigation and thorough law enforcement, the special investigation headquarters will also investigate spouses and direct relatives, which were originally to be handled by the joint investigation team.

Additionally, the Anti-Corruption and Civil Rights Commission will thoroughly investigate reports related to speculation allegations and make a separate announcement to the public.

For reference, during this investigation process, housing transaction details other than land were also confirmed. Most were apartments, including transactions in Haengsin-dong, Goyang City, and Dasan New Town, Namyangju. All transaction details will be forwarded to the special investigation headquarters for use as investigation reference materials.

Second, speculative acts by public officials abusing information are a betrayal of the people and a crime that undermines national discipline. Just as the government mobilized all resources to combat COVID-19, we will investigate and prosecute thoroughly and harshly until the public demands cessation.

We will establish a systematic institutional system to transparently monitor speculative acts by public officials and employees of public corporations. Public officials involved in illegal speculation will be immediately expelled.

Along with this, we will analyze every step of the public housing supply process in detail and devise strong control measures so that public officials and others cannot even think of the word speculation.

Furthermore, we will mobilize all current laws and systems to fully recover speculative profits. We will also swiftly implement institutional improvements and legislative measures in consultation with the National Assembly to ensure that illegal gains are definitely recovered.

Third, LH and its employees, who caused this problem, must respond to the public’s criticism questioning whether the institution is still necessary. Public trust in LH has fallen irreparably.

To enable LH to properly fulfill its original mission, we will have the Deputy Prime Minister for Economy prepare innovative measures to eradicate existing malpractices and completely reform the organization.

Fourth, the public is now asking whether housing supply is being conducted fairly and justly. The government has the responsibility to restore the public’s sense of deprivation.

The government declares war on real estate crimes. We will prepare and strongly enforce special measures to crack down on illegal and unfair practices in the real estate market, such as false listings, planned real estate speculation, and fly-by-night brokers.

Additionally, to stabilize the housing market, the originally planned public housing supply will be carried out without delay.

Policies without public trust are difficult to succeed. We will thoroughly address the LH incident and use it as an opportunity to start anew. The entire cabinet will work with a tense attitude to restore the lost trust of the people.

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