Prosecutors Raid SH Corporation Headquarters and Others... Related to 'Neglecting Houses Purchased with Lien Rights'

[Asia Economy Reporter Choi Seok-jin] The prosecution conducted a search and seizure at the headquarters of Seoul Housing and Communities Corporation (SH Corporation) in connection with suspicions that SH Corporation purchased a house with a lien for 10 billion won and left it unattended for over two years.

The Anti-Corruption Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jeong Yong-hwan) announced on the 2nd that it executed a search warrant at SH Corporation's headquarters located in Gaepo-dong, Gangnam-gu, Seoul, regarding the suspicions referred for investigation by the Board of Audit and Inspection.

At the end of 2018, SH Corporation purchased a multi-family house in Gasan-dong, Geumcheon-gu for 10 billion won with the intention of using it as public rental housing.

However, due to payment disputes between the building owner and subcontractors, the subcontractors exercised a lien on the property, preventing SH Corporation from proceeding with the rental business.

The Board of Audit and Inspection recently confirmed these facts during SH Corporation's regular audit and referred the case to the prosecution. The prosecution is investigating with the possibility of applying charges such as breach of trust against SH Corporation in mind.

SH Corporation stated that the lien was not recorded in the registry and could usually only be confirmed through on-site placards, but when they conducted an on-site inspection, there were no such signs, so they were unaware of the lien.

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