Pocheon City Official, First Arrest Warrant Request After 'LH Incident'... Seizure Preservation Also Approved (Comprehensive)

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 Pocheon City Hall official in Gyeonggi Province suspected of speculating by purchasing land and buildings near a planned subway station site.

This is the first time the police have taken compulsory custody measures against a public official in connection with the real estate speculation investigation triggered by employees of Korea Land and Housing Corporation (LH). The confiscation preservation of the real estate purchased by this official has also been decided.

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 against a senior official A of Pocheon City Hall on charges of violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission (using business secrets).

The police also applied for confiscation preservation of the land and buildings purchased by A, and the Uijeongbu District Court approved the application this afternoon. Confiscation preservation is a court order that freezes illegal profit assets so that the suspect cannot dispose of them arbitrarily 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 a subway station on the extended urban railway line 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 had previously been in charge of work related to the urban railway extension project.

A 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 believe there is a high likelihood that A used insider information. It means that they decided to apply for an arrest warrant considering that A was in a position to sufficiently obtain insider information and the timing of the purchase.

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 was converted into a compulsory search and seizure. A police official said, "We believe a significant portion of the main charges has been substantiated," adding, "Considering the seriousness of the matter, we applied for an arrest warrant."

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