LH Jeonbuk Headquarters Raided and Employees Summoned... Police Accelerate Investigation into Speculation Allegations

Suspicion of Speculative Investment in Gwangmyeong-Siheung Expedition
Investigation of New Town Land Purchase Employees
Investigation of 15 Current and Former Officials to Conclude This Week

The Anti-Corruption Crime Investigation Unit of the Jeonbuk Provincial Police Agency, investigating real estate speculation allegations in the Seoul metropolitan area new towns, completed a search and seizure at the Jeonbuk Regional Headquarters office of Korea Land and Housing Corporation (LH) on the 22nd and is moving the seized items.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] The Jeonbuk Provincial Police Agency's special investigation team for real estate speculation crimes began conducting raids at three locations, including the Korea Land and Housing Corporation (LH) Jeonbuk Regional Headquarters, starting around 8 a.m. on the 22nd. The police are reportedly investigating suspicions that LH Jeonbuk headquarters employees and their relatives engaged in "expedition speculation" in the Gwangmyeong-Siheung district, a planned site for the third phase of new towns in 2018. The speculation allegations involving the Jeonbuk headquarters employee surfaced after Mr. A, who served as the Jeonbuk regional head and was found dead by apparent suicide on the 12th in Seongnam, Gyeonggi Province. Mr. A reportedly left a note stating, "I deeply feel responsible as the regional head."

The Gyeonggi Southern Provincial Police Agency's special investigation unit for real estate speculation crimes summoned one LH employee for questioning as a suspect around 9:30 a.m. that day. When asked by reporters why he purchased land within the new town, the employee remained silent. This follows the summons of three key suspects, including LH employee Kang Mo, known as "President Kang" in the Gwangmyeong-Siheung real estate industry. The Gyeonggi Southern Provincial Police plan to summon and investigate three current and former LH employees that day.

The Gyeonggi Northern Provincial Police Agency also summoned Mr. B, a senior public official from Pocheon City, who was implicated in speculation allegations the previous day, and questioned him for about 11 hours. Mr. B and his spouse purchased approximately 2,600 square meters of land near the planned station site of the urban railway extension in September last year. The controversy grew as Mr. B was known to have worked in the relevant department in 2019.

The police's forced investigations will continue for the time being. The Gyeonggi Southern Provincial Police plan to complete summons and investigations of 15 current and former LH employees suspected of initial speculation within this week. Since the government joint investigation team requested additional investigations last week into 23 local government officials and employees of local public enterprises, internal investigations are ongoing. There is a high possibility of additional raids once facts are confirmed. Raids are also expected related to the "Sejong Smart National Industrial Complex" speculation allegations, including summons of involved public officials, as well as on the farmland law violation case in the Garim-dong area of Siheung, Gyeonggi Province, which was additionally exposed by the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun) on the 17th.

As speculation allegations involving some police officers have surfaced, the police are reportedly struggling to conceal their embarrassment. There are suspicions that a current police officer purchased land in the planned site of the Sejong Smart National Industrial Complex mentioned earlier. The Sejong Police Agency has launched an internal investigation into the officer. Commissioner General Kim Chang-ryong stated in written materials at a press briefing that "We are thoroughly verifying not only the third phase new towns but also employees and their families involved in various development projects in other regions, including cases of proxy transactions." He added, "Regarding real estate speculation, we are conducting fair and strict judicial processing regardless of the suspect's status or rank." He emphasized, "We will firmly respond, including pursuing arrest investigations, against public officials who misuse internal information or their positions for real estate speculation."

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