1848 People Under Special Investigation for 'Speculation Allegations'... Accelerating Recovery of Illegal Profits Through Tax Audits

943 Real Estate Speculators and 905 Planned Real Estate Operators
'Insider Information Use' Pocheon City Officials Arrested and Indicted
210 Suspicious Tax Evasion Transactions Referred to National Tax Service Audit
Pre-Indictment Seizure and Forfeiture Preservation of 29.8 Billion KRW

[Asia Economy Reporter Lee Gwan-ju] The government joint special investigation headquarters (Special Investigation Headquarters, SIH) has expanded its investigation targets to over 1,800 people regarding real estate speculation allegations triggered by the Korea Land and Housing Corporation (LH). The SIH is accelerating the recovery of illegal profits by applying for pre-indictment seizure and preservation measures and requesting tax audits from the National Tax Service.

Yoo Jae-sung, SIH public relations officer (Scientific Investigation Manager at the National Police Agency’s National Investigation Headquarters), stated on the 26th, "Currently, a total of 225 cases involving 943 individuals related to real estate speculation are under preliminary investigation and investigation." Among them, nine people have been detained, and 121 have been referred to the prosecution. Additionally, investigations are underway for 229 cases involving 905 people related to illegal real estate activities such as planned real estate and illegal resale of pre-sale rights. The identities of those under investigation include four current and former high-ranking public officials, five members of the National Assembly, and 11 local government heads. Among them, 53 LH employees are involved, including 46 suspected of speculation and seven related to planned real estate.

The first prosecution case since the launch of the SIH has also emerged. The Uijeongbu District Prosecutors’ Office arrested and indicted Park Mo (52), an executive official at Pocheon City Hall in Gyeonggi Province, on charges of real estate speculation worth 4 billion KRW using insider information (violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission). Park is accused of purchasing seven plots of land totaling 2,600㎡ near a planned subway station site in joint ownership with his spouse, A, in September last year using insider information. The land was purchased for 4 billion KRW, but its current market value is reported to be about 10 billion KRW.

Regarding former Administrative City Construction Agency (AHC) chief Lee Mo, who was investigated for 14 hours last week at the Police Agency’s Major Crimes Investigation Division, additional summons are expected. A SIH official explained, "Lee stated during the investigation that he did not admit to the charges," adding, "Further investigation is necessary." Lee is known to be the highest-ranking official (vice-minister level) among the current and former public officials under investigation by the SIH.

Alongside investigations of public officials, the SIH is speeding up the recovery of illegal profits obtained through speculation. As of today, eight cases involving approximately 29.8 billion KRW in pre-indictment seizure and preservation requests submitted by the SIH have been approved by the court. Additionally, the SIH has applied for seizure and preservation of illegal gains in six cases amounting to about 5 billion KRW.

Furthermore, the SIH analyzed business sites conducted by LH, including the 3rd phase new towns, and real estate transaction report data to select 210 suspicious transactions involving gift tax and capital gains tax evasion, such as disguised gifts, name trusts, and under-the-table contracts, and requested tax audits from the National Tax Service. A SIH official said, "In addition to pre-indictment seizure and preservation, we intend to recover illegal profits and collect taxes," adding, "Additional investigations will be necessary for the National Tax Service to collect taxes."

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