Investigation into Speculation Allegations Targeting 'Gowi-cheung'... Special Investigation Unit at a Turning Point

Search and Seizure of Companies Related to Assemblyman Kang Ki-yoon
Former Happy City Chief Summoned for 14-Hour Investigation
Over 60 High-Ranking Officials and Elected Public Officers
Police Must Prove Investigative Capability

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] The government joint special investigation headquarters (Special Investigation Headquarters, SIH), which is investigating real estate speculation allegations, is gradually turning its focus toward high-ranking officials. Alongside conducting a search and seizure related to speculation allegations against Kang Ki-yoon, a member of the People Power Party, the SIH conducted a lengthy investigation of a former head of the Administrative City Construction Agency (Haengbokcheong), known as a top-ranking official among current and former public servants under investigation. This is interpreted as a signal that the investigation is accelerating.

This investigation into high-ranking officials is expected to be a critical turning point that will determine the success or failure of the SIH's efforts. For the police, who have emphasized an investigation without sanctuary, this is the time to ensure thorough investigations into high-ranking officials to prove their investigative capabilities and resolve all speculation allegations.

Earlier, on the 23rd at around 10 a.m., the SIH summoned Mr. Lee, a former head of the Administrative City Construction Agency (Haengbokcheong), to the Serious Crime Investigation Division of the National Police Agency in Hannam-dong, Yongsan-gu, Seoul, for questioning. Mr. Lee completed his investigation around midnight after approximately 14 hours and returned home. When leaving, he did not respond to reporters' questions regarding whether he admitted to the charges and left by car.

During his tenure as head of Haengbokcheong in late April 2017, Mr. Lee purchased two plots of land totaling 2,455㎡ in Nulwang-ri, Yeongi-myeon, Sejong City, under his wife's name. The official land price at that time was 107,000 KRW per square meter, which rose to 154,000 KRW three years later. After his retirement, in late November 2017, he acquired 622㎡ of land and a lightweight steel structure in Bongam-ri, Yeonseo-myeon, Sejong City. This sparked controversy over speculation using insider information as the nearby Wachon and Budong-ri areas were scheduled to be designated as a candidate site for the Smart National Industrial Complex.

The head of Haengbokcheong is the highest position responsible for the construction of the new city of Sejong and is equivalent to a vice-ministerial level. Mr. Lee is the highest-ranking suspect summoned by the SIH since its launch to investigate real estate speculation allegations. The SIH conducted search and seizure operations at Haengbokcheong and other locations on the 26th of last month, securing related materials and continuing witness investigations.

It has also been confirmed that a search and seizure related to Kang Ki-yoon's speculation allegations was conducted. On the 22nd, the Gyeongnam Police Agency searched a manufacturing company formerly led by Kang and a parts company where Kang's wife and son are the largest shareholders. This parts company purchased approximately 79,600㎡ (about 24,000 pyeong) of land at the second pier of Jinhae Port, Gyeongnam, in 2018 for 27 billion KRW, about half of the appraised value. It is suspected that they made about 3 billion KRW in capital gains by selling part of the land in 2019 and 2020.

Kang is one of five members of the National Assembly under investigation by the SIH and is the first incumbent lawmaker to undergo a forced investigation. Including family members of lawmakers, the total number of current lawmakers under investigation rises to ten. Including this, among the known SIH investigation targets are four current and former high-ranking public officials, eleven incumbent local government heads, and local council members, totaling over 60 public officials classified as high-ranking or elected officials.

The core of the investigation into high-ranking officials, as with other real estate speculation allegations, lies in determining whether speculation was conducted using insider information. Only if the use of insider information by public officials is confirmed can the provisions of the "Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission" regarding the prohibition of public officials' use of official secrets be applied for punishment.

Accordingly, investigations into high-ranking officials are expected to take time. In particular, procedures must be followed to verify through which channels and from whom they obtained the information. This requires securing evidence and conducting extensive witness investigations simultaneously. In fact, it took nearly a month after the first search and seizure to summon former Haengbokcheong head Mr. Lee. The SIH has consistently emphasized strict investigations regardless of rank or status. The investigation into speculation allegations involving high-ranking officials is expected to be an important measure of the SIH's determination and capability.

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