Is the LH Scandal the Prosecutors' Fault? Lee Nak-yeon and Choo Mi-ae Persistently Claim 'Prosecutors' Responsibility'... Citizens Express Outrage

"Real Estate Corruption Is the Prosecution's Responsibility"… Lee Nak-yeon and Chu Mi-ae Criticize the Prosecution in Succession
Citizens Express Frustration: "They Cut Off the Prosecution's Hands and Feet, Then Blame Others"

Lee Nak-yeon, Standing Election Committee Chairman of the Democratic Party of Korea, is attending the Central Election Committee meeting held at the National Assembly on the 15th and delivering a speech. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kang Juhee] Controversy is brewing as ruling party figures are repeatedly asserting a 'prosecutorial responsibility theory' regarding allegations of land speculation by employees of the Korea Land and Housing Corporation (LH) in planned new towns. Among citizens, criticism is emerging that blaming the prosecution for the current government's real estate policy failures and the widespread issue of public officials' land speculation is obscuring the essence of the situation.

Lee Nak-yeon, the standing election committee chairman of the Democratic Party of Korea, stated on his Facebook on the 14th, "Last July, former Minister of Justice Choo Mi-ae instructed the prosecution to investigate real estate crimes. However, the prosecution did nothing," implying that the prosecution is responsible for the current LH scandal.

Lee further said, "Conservative media rather criticized the Ministry of Justice. In the National Assembly, the opposition party reprimanded Minister Choo," adding, "We are now seeing the results of that."

On the 16th, Lee reiterated the 'prosecutorial responsibility theory.' In an interview with CBS Radio's 'Kim Jong-dae's News Up,' he said, "Last July, Minister Choo gave instructions like this," and pointed out, "She ordered a strict crackdown on illegal activities by speculative real estate companies, real estate private equity funds, unauthorized development in restricted areas and farmland, nominee transactions, and illegal real estate brokerage activities, but the prosecution has done little."

When the host asked, "Isn't blaming the prosecution a bit forced? Are you targeting former Prosecutor General Yoon Seok-youl?" Lee responded, "They are really pitiful people," and insisted, "If they said to strictly punish crimes, they should have done so. If they said to investigate socially significant problems, they should have investigated."

Former Minister of Justice Choo Mi-ae.
Photo by Yonhap News

Former Minister of Justice Choo Mi-ae also launched an offensive against the prosecution, saying, "The corruption in the real estate market is the prosecution's responsibility." On the 14th, she posted on Facebook an article titled "The Prosecutorial Republic and the Corrupt Republic Are Two Sides of the Same Coin," claiming, "The prosecution bears the greatest responsibility for the failure to properly investigate corruption in the real estate market."

She mentioned the special preferential sale allegations related to Busan Haeundae LCT and criticized, "Has the prosecution not changed at all over the two decades? The forces that fostered the invincible real estate myth like Lee Young-bok (LCT chairman) are the prosecution, which, despite having powerful investigative and prosecutorial authority, failed to properly investigate and prosecute and colluded."

As these remarks by ruling party figures regarding the LH scandal became known, citizens grew even more outraged. They pointed out that blaming the prosecution for the government's real estate policy failures and public officials' land speculation problems is obscuring the core issue.

Netizens expressed their frustration with comments such as, "Why bring up speculative real estate companies when talking about the LH scandal involving land speculation using insider information? Bringing up the prosecutorial responsibility theory is just shifting blame again," "It's infuriating to see the double standards of someone who exercised investigative authority over the Prosecutor General and suspended him during their ministerial tenure, yet still blames the prosecution," and "A country where even working hard can't buy a house, failed real estate policies announced 26 times, everyone knows who is responsible."

President Moon Jae-in is speaking at the Cabinet meeting held at the Blue House on the morning of the 16th. Photo by Yonhap News

The opposition party also raised their voices criticizing ruling party figures for blaming the prosecution when it is disadvantageous. Kim Eun-hye, spokesperson for the People Power Party, issued a statement on the 11th, saying, "Who are the ones who treated the public like speculators while claiming to crack down on real estate speculation, handed uncontrollable power to Ministers Cho Kuk and Choo Mi-ae, stripped investigative authority, and made it impossible for the prosecution to do their job?"

She added, "The public has been appealing through Blue House petitions for two years to eradicate speculation by people from the Moon Jae-in administration, but what this regime actually did was kill the prosecution to protect their own and betray the people to cover up speculation."

Sim Sang-jung, a Justice Party lawmaker, also strongly criticized the LH scandal as "the accumulated evils of the Moon Jae-in government." At a party meeting held at the National Assembly on the morning of the 16th, Sim said, "Real estate evils have accumulated since previous governments, but the corruption of public officials revealed this time is the evil of the Moon Jae-in government," and pointed out, "Such disastrous real estate speculation has continued and even expanded under a government that claims to be a candlelight revolution government, which is why the people are expressing feelings of betrayal."

Meanwhile, President Moon Jae-in apologized for the first time on the 16th regarding the LH speculation scandal. President Moon said, "It has caused great disillusionment and disappointment to the citizens who live sincerely," and "We recognize the corrupt structure of our society seriously and will take a more humble stance and act with a heavy sense of responsibility."

He continued, "Our government, born from the candlelight revolution, has done its best to eradicate corruption and unfairness and to create a transparent and fair society," emphasizing, "If we eliminate the real estate evils, which are the root of unfairness, it will be a turning point for our country to become a more transparent and fair society."

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