Suspicion of Real Estate Speculation by LH, 746 People Under Special Investigation and Inquiry

47 People Referred to Prosecution
140 Public Officials Including Local Government Heads

National Police Agency Criminal Investigation Headquarters building. [Provided by National Police Agency]

[Asia Economy Reporter Lee Gwan-joo] The government joint special investigation headquarters (Special Investigation Headquarters) investigating real estate speculation allegations triggered by the Korea Land and Housing Corporation (LH) has expanded its investigation targets to over 700 people. The investigation is accelerating, with pre-trial detention hearings (warrant hearings) for LH employees being held one after another.

At a briefing held at the National Police Agency on the 12th, the Special Investigation Headquarters announced, "Currently, a total of 178 cases involving 746 people related to real estate speculation are under preliminary investigation and investigation." Among them, 47 individuals deemed to have sufficient evidence of wrongdoing have been referred to the prosecution, while investigations are ongoing for 636 others.

Among the investigation targets, 140 are public officials, including 10 heads of local governments. There are 44 members of the National Assembly and local councilors, and 38 LH employees. By source of investigation leads, 20 cases were reported by civic groups, 8 cases were requested for investigation by other agencies such as the government joint investigation team, 12 cases were complaints received through the police reporting center, and 138 cases were recognized and investigated independently by the police. Additionally, a total of 831 reports have been received through the police reporting center, of which about 160 cases are being fact-checked by the relevant city and provincial police agencies.

Notably, four public officials and LH employees suspected of speculation using internal development information have been detained. The real estate they purchased, valued at approximately 24 billion KRW, has been subject to seizure preservation requests, which the court has approved, and seizure preservation procedures before indictment are underway for three other cases. On this day, pre-trial detention hearings are scheduled for two LH employees, and the number of detentions is expected to increase. The Special Investigation Headquarters is also analyzing real estate-related data such as land transaction records in the 3rd new town development areas in cooperation with the Financial Services Commission, National Tax Service, Financial Supervisory Service, and Korea Real Estate Board, selecting suspects of illegal activities such as violations of the Farmland Act, nominee transactions, and planned real estate speculation for preliminary investigation.

Yoo Jae-sung, the public relations officer of the Special Investigation Headquarters and forensic investigation manager at the National Police Agency’s National Investigation Headquarters, stated, "We are thoroughly analyzing development-related information not only for the 3rd new towns but also for regions nationwide, actively collecting intelligence on speculation allegations, and thoroughly investigating all suspicions. Regardless of status or position, we will investigate without exception according to law and principles. Public officials involved in speculation corruption will be subject to detention and strict judicial processing, and speculative profits will be recovered through seizure and confiscation measures."

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