Police Likely to Investigate Kim Sang-jo for 'Use of Confidential Information in Official Duties'

Judicial Exam Prep Group Accuses
"Investigation Under Seoul Police Agency"
Gyeonggi Southern Police, Gunpo City Hall Raided
Special Investigation Unit Doubles Staff
Probe Expands to Planned Real Estate

Kim Sang-jo, former Chief Presidential Secretary for Policy.

[Asia Economy Reporter Lee Gwan-joo] The police are expected to launch a formal investigation into former Blue House Policy Chief Kim Sang-jo, who was dismissed after raising the rent of his Cheongdam-dong apartment by 14% two days before the implementation of the ‘Lease Protection Act’.

An official from the Government Joint Special Investigation Headquarters (Special Investigation Headquarters), which is investigating real estate speculation cases, stated on the 31st, "A complaint against former Chief Kim has been filed and is currently under review," adding, "The investigation will be conducted under the Seoul Metropolitan Police Agency."

The day before, the Judicial Examination Preparation Group (Sajunmo) filed a complaint with the National Police Agency’s National Investigation Headquarters against former Chief Kim and his spouse for alleged use of confidential information in violation of the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission. In the complaint, Sajunmo argued, "The three Lease Protection Acts were pushed through the National Assembly plenary session and implemented the very next day with such urgency that it resembled a military operation, making it highly likely that it was considered confidential within the Blue House," and "As the Blue House Policy Chief overseeing the entire state affairs at the time of the contract, former Chief Kim must have been aware that the three Lease Protection Acts would be swiftly passed and implemented." With former Chief Kim now under investigation, it is reported that at least three current and former high-ranking officials have become targets of the Special Investigation Headquarters.

The Special Investigation Headquarters is accelerating its probe into real estate speculation allegations involving public officials. The Special Investigation Unit for Real Estate Speculation Crimes of the Gyeonggi Southern Provincial Police Agency has been conducting raids since 9:30 a.m. today at six locations, including Gunpo City Hall, in connection with a Gunpo City official, Mr. A, suspected of speculation after purchasing land parcels in a public housing district. Mr. A reportedly purchased two parcels (2,235㎡) in the Daeyami Public Housing District in September 2016 with four acquaintances for 1.48 billion KRW, reportedly earning several hundred million won in profits.

The Special Investigation Unit for Real Estate Speculation Crimes of the Gyeonggi Northern Provincial Police Agency is investigating or conducting preliminary inquiries into 21 individuals (across 12 cases) on charges including real estate speculation. These include three former employees and two current employees of Korea Land and Housing Corporation (LH), two public officials, three local council members, and eleven civilians. Among them are Mr. A, a former LH employee dismissed after it was confirmed he earned extra money as a ‘top instructor for land auction,’ and Mr. B, who was found dead in a container on his land in Beopwon-eup, Paju City, on the 13th after speculation allegations surfaced.

The Special Investigation Headquarters plans to increase its personnel from the current 770 to 1,560 to expedite investigations. Currently, 194 additional personnel are being deployed to the Special Investigation Units for Real Estate Speculation Crimes in provincial police agencies, including units for violent crime investigations and cyber investigations. Additionally, the number of National Tax Service personnel dispatched for confiscation of illicit gains and tax tracking will be increased to 36. Furthermore, special real estate investigation teams will be established in 194 first-class police stations to further strengthen investigative capabilities.

Changes in investigation targets are also anticipated. In addition to ongoing investigations into LH employees and public officials’ use of insider information for speculation and transactions under false names, ‘planned real estate’ schemes that generate illicit profits through false information have also been brought under scrutiny. Earlier, since December last year, the police have been cracking down on illegal activities in the apartment sales market. Essentially, the police have launched a crackdown on illegal activities across the entire real estate sector. Nam Gu-jun, head of the National Investigation Headquarters at the National Police Agency leading the Special Investigation Headquarters, stated, "We will expand the scope of investigations to include planned real estate and approach the investigation with the determination to eradicate real estate speculation."

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