One-Month Review of LH Investigation... Mammoth Special Task Force Still 'Empty-Handed'

On the afternoon of the 9th of last month, when the police conducted a search and seizure related to allegations of land speculation by executives and employees, people were moving toward the main gate of the Korea Land and Housing Corporation (LH) headquarters in Chungmugong-dong, Jinju-si, Gyeongnam.
[Image source=Yonhap News]

[Asia Economy Reporter Donghoon Jung] It has been a month since the public real estate speculation allegations triggered by employees of Korea Land and Housing Corporation (LH) surfaced. Since the Lawyers for a Democratic Society and People's Solidarity for Participatory Democracy raised suspicions of speculation involving current and former LH employees in Gwangmyeong and new towns on the 2nd of last month, police investigations have been criticized for lacking substance despite their scale and speed.

According to the police on the 5th, the special investigation unit has placed a total of 576 individuals (as of the 30th of last month), including LH employees, members of the National Assembly, city and county council members, and public officials, under investigation. This unprecedented investigation involves about 2,000 personnel, including approximately 1,500 police officers and 500 prosecutors.

With large-scale raids conducted by regional police agencies, the investigation is progressing rapidly. The areas under investigation have become diverse and extensive. Beyond the original LH land speculation suspicion areas in Gwangmyeong and Siheung in Gyeonggi Province, the investigation now covers locations such as the Yongin semiconductor cluster, the planned subway station site in Pocheon, Gunpo Daeyami public housing district, Goyang Changneung new town, and Namyangju Wangsuk new town within Gyeonggi Province. Additionally, there are over ten locations nationwide where land speculation allegations have been raised or investigations are advancing, including Incheon Gyeyang new town, Daegu Yeonho district, Sejong City, and Asan in Chungnam Province. Rapid raids have also been conducted at the LH headquarters in Jinju, Gyeongnam, LH Gwacheon-Uiwang project headquarters, Gwangmyeong-Siheung project headquarters, and the Ministry of Land, Infrastructure and Transport, securing materials such as personal mobile phones, computers, and land development-related maps from residences.

There have been cases of detention following compulsory investigations. A public official from Pocheon City Hall who purchased real estate near a planned subway station before the announcement was arrested on the 29th of last month. This is the first arrest since the launch of the government’s special investigation unit. A seizure preservation order was also issued. Seizure preservation is a court order that prevents the suspect from disposing of illegal profits subject to confiscation before a final verdict is reached. Additionally, an arrest warrant and seizure preservation have been requested for a former Gyeonggi Province public official who purchased land near the Yongin semiconductor cluster under a family company’s name. Investigations related to key government figures are also underway, including raids concerning speculation allegations involving the family of Jeon Hae-cheol, Minister of the Interior and Safety’s former aide.

There are criticisms that investigations into LH executives and employees, who provided the core trigger for this incident, are slow. The police are steadily conducting summons investigations of LH-related persons, including current LH employee Kang, nicknamed ‘Gang Sajang’ (Director Kang), who is involved in widespread speculation, but no arrest warrants have been requested yet. Compared to local public officials who are continuously active in their regions and easier to monitor through reports and intelligence, it is more difficult to identify LH employees suspected of land speculation. Ultimately, the success of the remaining investigation will hinge on clarifying how current and former employees, their families, and relatives shared insider information and used non-public information for land speculation.

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