'New Town Development Information Sharing' LH Employees Referred to Prosecution... 29.4 Billion KRW Confiscated and Recovered

[Asia Economy Reporter Lee Gwan-ju] An employee of Korea Land and Housing Corporation (LH) and an acquaintance, suspected of purchasing land using insider information while working in the 3rd New Town project department, will be handed over to the prosecution.

A government joint special investigation headquarters (Special Investigation Headquarters) official investigating real estate speculation allegations stated on the 21st, "Two people, including an LH employee responsible for new town development work, will be sent to the prosecution today."

LH employee A is suspected of sharing insider information obtained while working in the 3rd New Town development department in 2017 with others for speculation. The court previously issued pre-arrest warrants for A and two acquaintances who purchased land parcels in Noonsadong, Gwangmyeong-si, Gyeonggi Province, based on information obtained from A. The Special Investigation Headquarters is also reported to have confirmed circumstances where A provided new town development information to individuals related to the LH Jeonbuk headquarters, where allegations of remote speculation in the 3rd New Town were raised.

The Special Investigation Headquarters also applied for an arrest warrant for A’s relative B. In 2017, B purchased four land parcels in the Noonsadong area together with A and others for about 2.5 billion KRW, while the current market price of the land is known to be around 10.2 billion KRW. The Special Investigation Headquarters applied for seizure and preservation before indictment for the land they purchased, and the court approved the request.

Among the current and former public officials suspected of real estate speculation, former Administrative City Construction Agency chief A, known as the highest-ranking official so far, is expected to be summoned soon. This comes four weeks after the Special Investigation Headquarters began a forced investigation with a search and seizure at the end of last month. A Special Investigation Headquarters official explained, "We are coordinating the (summon schedule) with the person involved."

The Special Investigation Headquarters has so far obtained court approval for seizure and preservation related to six real estate speculation cases amounting to approximately 29.4 billion KRW, including the approval for A and others.

Meanwhile, regarding the recent repeated dismissal of arrest warrants by the court for an Incheon Jung-gu Office public official and a former Incheon City Council member, the Special Investigation Headquarters said, "We applied for the warrants because we judged there was a risk of flight or evidence destruction, so it is regrettable that the court dismissed them. However, the investigation will ultimately lead to prosecution and the court will determine guilt or innocence through trial, so the dismissal of the warrants does not pose a problem."

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