Jonamgwan "Aware of Practical Difficulties but Asking for Collective Wisdom"... 'Nationwide Prosecutors' Meeting to Eradicate Real Estate Speculation' (Comprehensive)

Acting Chief Cho: "Speculative Forces Like Planned Real Estate Must Be Rooted Out"
Prosecutors Inside and Outside Point Out "Limits of Direct Investigation Under Current Law"

On the 31st, Cho Nam-gwan, Acting Prosecutor General, is speaking at the nationwide prosecutors' video conference on real estate speculation held at the Supreme Prosecutors' Office. Photo by the Supreme Prosecutors' Office

[Asia Economy Reporter Choi Seok-jin] On the 31st, the prosecution held a "National Chief Prosecutors' Meeting" chaired by Acting Prosecutor General Cho Nam-gwan to discuss countermeasures to eradicate real estate speculation.

Following the government policy decided at the 7th Anti-Corruption Policy Council on the 29th, the prosecution unleashed various measures the day before, including principle-based detention investigations and expanded direct investigations of real estate speculation offenders. However, there are criticisms that the prosecution's role is limited in the current situation where the scope of direct investigations has been reduced due to the adjustment of investigative authority between the prosecution and police, and the prosecution's authority to direct police investigations has disappeared.

The Supreme Prosecutors' Office began a nationwide video conference of chief prosecutors at 10 a.m. on the same day to discuss the prosecution's response measures against real estate speculation offenders.

Attending the meeting were Acting Prosecutor General Cho, Lee Jong-geun, Head of the Criminal Department at the Supreme Prosecutors' Office, and Kim Bong-hyun, Head of the First Criminal Division, along with 18 district chief prosecutors nationwide and five metropolitan area branch chiefs in charge of the 3rd New Towns, including Seongnam, Goyang, Bucheon, Ansan, and Anyang.

In his opening remarks, Acting Prosecutor General Cho emphasized, "Serious real estate speculation crimes are fundamentally structured by the combination of public information and private speculative capital, and there is a great need to break this corrupt link."

He continued, "Analyzing cases over the past five years is not intended to punish old cases again but to identify the true nature of speculative forces hidden in the records," adding, "It is highly likely that past speculators have also participated in new development projects. From this perspective, it is necessary to root out speculative forces such as planned real estate."

He acknowledged, "I am well aware of the legal limitations and practical difficulties," but urged, "However, in this national emergency, I expect prosecution officials to come together with a responsible attitude and wisdom."

During the meeting, participants shared cases from the investigation of real estate speculation offenders in the 2nd New Towns such as Gimpo, Dongtan, Gwanggyo, and Pangyo, where in 2005 the prosecution formed a joint investigation headquarters with related agencies including the police, National Tax Service, and Ministry of Construction and Transportation, uncovering over 15,000 speculators and detaining 455 of them.

They also received reports on the status of dedicated real estate speculation investigation teams across prosecution offices nationwide and their response cases, and are expected to discuss future countermeasures.

The day before, the Supreme Prosecutors' Office instructed frontline prosecution offices to ▲form dedicated investigation teams at 43 prosecution offices nationwide (deploying about 500 prosecutors and investigators), ▲detain all public officials involved in speculation and seek the maximum legal penalties, ▲fully review real estate speculation cases within the past five years, and ▲fundamentally confiscate criminal proceeds and promptly and strictly handle transferred cases.

However, despite the prosecution's active response policy, there is a prevailing view around the prosecution that under current laws, the prosecution will face limitations in achieving investigative results in the ongoing "LH case."

Most notably, the Anti-Corruption and Civil Rights Commission Act, the Special Act on Public Housing, and the Farmland Act, which apply to this case, are not included among the "six major crimes" that the prosecution can directly investigate, meaning the prosecution originally lacks investigative authority. Moreover, with the police leading the investigation, the prosecution's role is inevitably limited to supporting investigative tasks.

A current prosecutor, A, pointed out, "The Prime Minister suddenly mentioned direct prosecution investigations because public opinion worsened, but what can be done without investigative authority?" and added, "The scope in which the prosecution can directly investigate during the investigation process is extremely limited."

Another prosecution official, B, said, "Even though the announced measures yesterday used provocative expressions like 'detain all,' when you look at the content, it only applies to serious offenses such as 'using official secrets for personal gain' or 'leaking development information,' limited to public officials," and added, "They say they will find countermeasures by referring to past cases like the 2nd New Town investigation, but at that time, a joint investigation headquarters was established at the Supreme Prosecutors' Office, and the prosecution led and directed the police, so the situation is completely different now."

The scene of the nationwide prosecutors' video conference on real estate speculation held at the Supreme Prosecutors' Office on the 31st. / Photo by the Supreme Prosecutors' Office

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