Police Arrest Former Gyeonggi Province Official on Suspicion of Land Speculation in Yongin Semiconductor Cluster

On the morning of the 28th of last month, former senior public official A entered the Gyeonggi Nambu Police Agency to undergo investigation related to speculation allegations at the planned semiconductor cluster development site in Wonsam-myeon, Yongin-si, Gyeonggi Province.
[Image source=Yonhap News]

[Asia Economy Reporter Donghoon Jeong] The police have decided to detain and investigate a former senior official of Gyeonggi Provincial Government who is suspected of speculation for purchasing land near the Yongin Semiconductor Cluster under the name of his family company. The government joint special investigation headquarters (Special Investigation Headquarters), which is investigating real estate corruption centered on land speculation allegations involving employees of Korea Land and Housing Corporation (LH), has applied for an arrest warrant and seizure preservation for the second time, following a public official from Pocheon City.

The Special Investigation Team for Real Estate Speculators of the Southern Gyeonggi Provincial Police Agency applied for an arrest warrant on the 2nd against Mr. A, former team leader in charge of corporate investment attraction at the Investment Promotion Division of Gyeonggi Provincial Government, on charges including violation of the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission. They also applied for seizure preservation before indictment on the land Mr. A purchased. Seizure preservation is a court order that prevents the suspect from arbitrarily disposing of illegal profits subject to confiscation before a final judgment is made.

In October 2018, while serving as the team leader of the Investment Promotion Division of Gyeonggi Province, Mr. A purchased four parcels of land totaling approximately 1,500 square meters in Dokseong-ri, Wonsam-myeon, Cheoin-gu, Yongin City, through company B, where his wife is the representative, for 500 million KRW. It is known that the market price of this land rose to over 2.5 billion KRW after the development plan for the semiconductor cluster was disclosed.

The timing of company B’s purchase of this land coincided with when Gyeonggi Province repeatedly visited the Ministry of Strategy and Finance and the Ministry of Trade, Industry and Energy to propose the establishment of a semiconductor cluster centered around SK Hynix. Gyeonggi Province reported Mr. A on the 23rd of last month, believing that he gained unfair profits by using confidential information obtained during his public service period.

The police analyzed materials secured through a search of Mr. A’s residence and summoned him for investigation, capturing evidence that he purchased the land using confidential work information. Believing that the charges can be proven, they proceeded to secure his custody. It is reported that Mr. A denies the charges during police questioning.

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