Changwon City on 'LH Construction Real Estate Speculation Allegations' ... "Will Clearly Uncover Public Officials' Speculation Suspicions"

Investigation of Public Officials Suspected of Speculative Use of Non-Public Information in Residential Site Development, Industrial Complex Creation, Tourism, and Park Development Projects

On the 15th, Heo Seong-mu, Mayor of Changwon City, announced at a briefing held at the City Hall Press Center that a "special comprehensive investigation related to allegations of public officials' speculation in development projects" will be conducted.

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Changwon City in Gyeongnam announced on the 15th that it will conduct a "Special Comprehensive Investigation on Development Project Public Officials' Speculation Suspicions" in relation to recent real estate speculation allegations involving LH Corporation executives and employees.

Mayor Heo Seong-mu of Changwon stated in a briefing that afternoon, "We plan to conduct an in-depth investigation targeting all Changwon City employees of grade 7 and above, as well as current and former personnel involved in 27 development projects across four sectors?residential land development, industrial complex formation, tourism, and park development?carried out over the past 10 years. In particular, public officials of grade 5 and above and current and former personnel involved will be investigated along with their spouses and direct lineal relatives," he said.

The city formed a special investigation team centered on the Audit Officer on the 12th and will begin the investigation by collecting consent forms for the use of personal information from the targeted employees starting on the 15th.

Subsequently, through analysis of project records and compensation details, verification of suspects involved in speculation allegations will be conducted, with the first interim results expected to be announced around mid-April.

Additionally, the city will operate a "Real Estate Speculation Public Interest Reporting Center" to receive voluntary reports from public officials and citizen tips related to real estate speculation.

Mayor Heo said, "If public officials suspected of real estate speculation using undisclosed information are identified based on the investigation results, we will take strong measures under a zero-tolerance policy, including requesting investigations by judicial authorities. Given the seriousness and gravity of the situation, we will thoroughly investigate to dispel citizens' suspicions and distrust and transparently disclose the results."

The city will also conduct a separate special audit on the entire process of land acquisition and compensation related to the "Sapa District Urban Development Project" and the "Gaeumjeong Neighborhood Park Creation Project," which have been questioned by some.

The city intends to clearly disclose whether the standards and amounts for compensation for land and fixtures were appropriate, if there were any issues with appraisal evaluation standards or procedures, and whether there were any violations of the Agricultural Land Act concerning development-restricted zones.

The city also addressed the "submission of land compensation documents" related to the "Sapa District Urban Development Project" and the "Gaeumjeong Neighborhood Park Creation Project," which were recently raised as issues by the Justice Party Gyeongnam Provincial Party, some city council members, and certain media outlets.

The city’s position is that the issue regarding the "submission of land compensation documents" stems from differences in legal interpretation between the "Local Autonomy Act," cited by city council members as the basis for document submission requests, and the "Personal Information Protection Act," which protects citizens' information.

In this regard, the city has requested a review from the "Personal Information Protection Commission under the Prime Minister," the institution responsible for interpreting laws related to personal information protection, and is awaiting the results. The city plans to proceed according to the commission's decision.

Mayor Heo emphasized again, "We will do our best to realize the public interest by uncovering illegal speculation suspicions and guaranteeing citizens' right to know through this special comprehensive investigation, special audit, and by referring suspects reported through the public interest reporting center to judicial authorities. Changwon City will strictly and thoroughly investigate speculation suspicions in the public sector according to relevant laws and clearly expose any minor suspicions."

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