Pocheon City Official, First Arrest Warrant Request After 'LH Incident'... Also Seizure Preservation Requested

Gyeonggi Northern Provincial Office Begins Forced Detention
Purchase Near Planned Urban Railway Station Site
Party States "Already Known Information"
Turning Point for Investigation Success
Reviewing Warrants for Former and Current LH Officials

On the 15th, police at Pocheon City Hall in Gyeonggi-do are moving seized items to a vehicle after completing a search and seizure.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] The police have applied for an arrest warrant for a public official at Pocheon City Hall in Gyeonggi Province who is suspected of speculation by purchasing land and buildings near a planned subway station site. This is the first time the police have taken compulsory custody of a public official in connection with the real estate speculation investigation triggered by employees of Korea Land and Housing Corporation (LH).

The Special Investigation Unit for Real Estate Speculation Crimes of the Northern Gyeonggi Provincial Police Agency announced on the 24th that it applied for a pre-arrest warrant yesterday for a senior official A of Pocheon City Hall on suspicion of violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission (using official secrets). The police also applied for seizure preservation of the land and buildings purchased by A. Seizure preservation is a court order that freezes illegal profits so that the suspect cannot arbitrarily dispose of them before a final judgment is made.

In September last year, A purchased about 2,600㎡ of land and a one-story prefabricated building near the planned site of the subway extension line station under joint ownership with his wife. The purchase cost of 4 billion KRW was financed through secured and unsecured loans, raising suspicions of speculation using insider information. A was also previously in charge of the subway extension project.

A reportedly denied the allegations, stating that the information about the station being built in the area was already public and therefore not problematic. However, the police place weight on the fact that A purchased the real estate before public hearings or briefings were held, suggesting the use of insider information.

The investigation into A began in earnest after the Judicial Examination Preparation Student Association filed a complaint with the National Police Agency's Criminal Investigation Headquarters on the 6th of this month. Four days later, on the 10th, the complainant was questioned, and on the 15th, the investigation escalated to a forced search and seizure.

After analyzing the secured materials, the police summoned A as a suspect on the 21st and focused on questioning whether insider information was used. The fact that the arrest warrant was applied for just two days after the investigation suggests that the police either secured important evidence to prove the charges or judged that there was a possibility of evidence destruction due to inconsistencies between the secured materials and A’s statements.

Starting with the arrest warrant application for A, it is expected that arrest warrant applications for other major suspects in speculation investigations will follow. Investigations are currently underway for 15 former and current employees of Korea Land and Housing Corporation (LH) who were initially reported for speculation in the 3rd New Town Gwangmyeong-Siheung district. The police are reportedly considering applying for arrest warrants for some employees, including a key suspect Kang Mo, known as ‘President Kang.’

This arrest warrant application is expected to be a turning point in the success or failure of the investigation amid discussions in the political sphere about introducing a special prosecutor. If the court issues an arrest warrant for A upon the prosecution’s request, it could dispel doubts about the police investigation raised so far.

On the other hand, if the warrant request is dismissed, criticism that the police have overreached in their investigation may grow, along with skepticism about their investigative capabilities. A police official stated, "We plan to investigate real estate speculation criminals swiftly and strictly according to law and principles."

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