Local Governments Mobilize Full-Scale Investigations and Reporting Centers to Prevent LH Scandal Recurrence

[Asia Economy Suwon·Seongnam=Reporters Lee Young-gyu·Sejong·Cheonan=Jung Il-woong] As suspicions of new town speculation by employees of Korea Land and Housing Corporation (LH) spread, local governments have begun inspections targeting public officials and affiliated organizations for speculation suspicions.

According to local governments on the 12th, Gyeonggi Province formed a full-scale investigation team regarding real estate speculation suspicions by public officials and also launched the ‘Gyeonggi Province Public Interest Reporting Hotline (hotline.gg.go.kr)’.

Once reports are received, the full-scale investigation team will investigate and impose internal disciplinary actions and, for violations of laws, will take strong measures such as requesting investigations and filing complaints. Depending on the results of the disposition, rewards will be given to both named and anonymous reporters.

Earlier on the 5th, the province formed the ‘Gyeonggi Province Development District Speculation Full-Scale Investigation Team’ and is closely cooperating with the government joint investigation team for the 3rd new town.

The investigation team is independently investigating six project districts and adjacent areas led by Gyeonggi Housing and Urban Corporation (GH), including Gyeonggi Yongin Platform City, Pyeongtaek Hyeondeok District, Gwangmyeong Hakon, Seongnam Geumto, Anyang Gwanyang High, and Anyang Indeokwon.

Seongnam City is conducting a comprehensive investigation of land transaction records for all 7,000 public officials and executives of affiliated organizations at city hall.

The investigation targets land (building) purchase records near the 3rd new town area and major development projects within the jurisdiction.

Through voluntary reports from affiliated public officials and executives of affiliated organizations, the related details will be initially verified, and based on the results of the internal investigation, audits and investigations will be requested for suspects.

Sejong City decided to conduct a self-investigation of real estate speculation on the site around Wachon-ri, Yeonseo-myeon, and simultaneously open and operate a public interest reporting center.

The Yeonseo-myeon area (3.3 million square meters) was selected as a candidate site for the Smart National Industrial Complex in 2018 and was designated as a land transaction permission zone in September of that year. Compensation is scheduled to begin next year.

Before the designation as a land transaction permission zone, prefabricated panel houses (so-called beehives) began to be built, and saplings were systematically planted in various places.

Also, between January and August 2018, the number of land transactions, which had been scarce, surged to over 7,000 cases.

The city plans to request investigations by the competent police station if the reports involve issues requiring police investigation such as proxy transactions, unregistered resale, or use of insider information, or if the real estate speculation investigation target is a retired public official.

Currently, Sejong Police have received data from the city regarding ownership changes and land transaction permit application details for the Yeonseo-myeon area from March to September 2018, and on the 10th, they began a full-scale preliminary investigation into speculation suspicions.

Cheonan City in Chungnam is conducting a full-scale investigation into whether public officials speculated in three ongoing urban development project districts in the jurisdiction: Buseong, Yonggok, and Seongjeong districts.

For those involved in urban development projects, consent for personal information collection is obtained, and spouses and direct lineal relatives are also included in the investigation targets.

The city plans to consider disciplinary actions and reporting to investigative agencies if there is clear suspicion.

In addition, Incheon City is investigating speculation suspicions in Gyeyang Technovalley, and Bucheon City in Gyeonggi Province is conducting investigations related to Bucheon Daejang District.

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