'LH Employee New Town Speculation Allegation' Report Ten Days... Police Investigation Still in Initial Stage

Participation Solidarity and Minbyun Hold First Press Conference on 2nd of This Month
Government Joint Investigation Team Requests Additional Investigation for 7 People
Provincial Police Agencies Expected to Launch Investigations

Series of Complaints... Complainants' Investigations Completed
Limitations of Police-Prosecutor Cooperation Revealed
Police 'Cognizance Investigation' Key to Success

Officials from the Ministry of Land, Infrastructure and Transport visited the National Investigation Headquarters of the Seoul Metropolitan Police Agency in Seodaemun-gu, Seoul, on the afternoon of the 11th to request an investigation into those suspected of land speculation related to the Korea Land and Housing Corporation (LH). Photo by Mo Honam munonam@

[Asia Economy Reporter Lee Gwan-ju] There is a growing gap between public outrage and police investigations regarding the speculation allegations involving employees of Korea Land and Housing Corporation (LH) related to the 3rd New Town development. Despite various suspicions and reports emerging not only from LH but also from the National Assembly, government, and local governments, the police investigation remains at an initial stage.

The National Police Agency’s National Investigation Headquarters (NIH) received a request for investigation yesterday from the government joint investigation team concerning 20 current LH employees identified as suspected speculators. Among them, 13 are already under police investigation following complaints from civic groups, so effectively, the government joint special investigation headquarters (Joint Investigation HQ) added 7 current employees to its investigation target. These individuals reportedly purchased land in Gwangmyeong-Siheung (2 people), Gwacheon (1), Hanam (1), Goyang (2), and Namyangju (1). Following Gwangmyeong-Siheung, the investigation scope has expanded to cover the entire 3rd New Town area. The Joint Investigation HQ plans to assign the cases to the Gyeonggi Southern Police Agency and Gyeonggi Northern Police Agency, which have jurisdiction over these areas. The Southern Agency has a dedicated investigation team of 78 members, and the Northern Agency has 45 members.

However, even ten days after the first allegations surfaced, the only known coercive investigation procedure was the search and seizure conducted on the 9th at LH headquarters, the business division, and the residences of the initially accused 13 employees. Considering that real estate speculation investigations are a “race against time,” criticism has been widespread that even this search and seizure, conducted after a week, was delayed. The NIH explained, "The warrant was applied for on Friday (the 5th) afternoon, but since the court was closed over the weekend, it was issued and executed on Monday (the 8th)."

Speculation allegations involving local government officials and local council members continue to be raised daily. The Judicial Examination Preparation Group (JEPG) filed complaints on the 6th against a Gwangmyeong City Hall official and a Siheung City council member, which were assigned to the Gyeonggi Southern Police Agency, and complainant investigations were conducted yesterday morning. JEPG also filed complaints regarding speculation allegations against a Pocheon City Hall official and an ‘LH top instructor’ employee, with complainant investigations held on the 10th.

The cooperation plan between the prosecution and police agreed upon at the working-level meeting yesterday also has clear limitations. The hotline established between the two agencies is likely to be used unilaterally by the police conducting individual investigations, and the prosecution’s role will be limited to supporting aspects such as warrant applications and sharing investigative techniques. Furthermore, even if matters subject to direct prosecution investigation are identified during police investigations, actual direct prosecution investigations are expected to be possible only after the police transfer the case.

What is more regrettable is that the police investigations conducted so far have proceeded only after complaints from civic groups and investigation requests from the government. While this facilitates investigation initiation by receiving related materials, the investigation targets are inevitably limited to those who have been accused. Ultimately, analyses suggest that the success of a comprehensive investigation into speculation crimes depends on how much the police can conduct ‘cognizance investigations’ based on their own intelligence. This is also a test of the investigative capabilities of the police, whose authority has increased due to the adjustment of investigative rights. A NIH official said, "We plan to operate a reporting center, and although it is early, there are ongoing preliminary investigations and intelligence. The number of cases handled will increase over time."

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