Seoul Police Investigate 180 People for Real Estate Speculation... Accelerating LH and SH Corruption Allegations

Investigation of Witness Related to Kim Sang-jo in 'Jeonse Price Increase Controversy'

Investigators from the Anti-Corruption and Public Crime Investigation Unit of the Seoul Metropolitan Police Agency, who launched a forced investigation into allegations of bribery involving employees of Seoul Housing & Communities Corporation (SH), are seen leaving the building carrying seized items after completing a search and seizure at the SH Corporation in Gangnam-gu, Seoul, on the afternoon of the 23rd.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] Police investigations related to real estate, including allegations of procurement corruption at Korea Land and Housing Corporation (LH) and bribery suspicions involving employees of Seoul Housing and Communities Corporation (SH), are gaining momentum.

On the 26th, Jang Ha-yeon, Commissioner of the Seoul Metropolitan Police Agency, stated at a press briefing regarding the investigation into real estate speculation allegations, "Search and seizure operations have been conducted, and we are currently performing digital forensics and meticulously reviewing related documents."

The number of LH employees under police investigation is seven, and four SH employees are also involved. Additionally, the Seoul Police Agency is conducting preliminary investigations and investigations into 29 cases involving 180 individuals related to real estate speculation allegations. Among these 180 individuals, it is known that 19 are public officials or current and former executives of public institutions.

Commissioner Jang emphasized, "The scope of the investigation into real estate-related offenders has expanded to include planned real estate speculation, among others," and added, "We will conduct the investigation swiftly and strictly."

Regarding allegations that former Blue House Policy Chief Kim Sang-jo excessively raised the rent deposit of an apartment just before the implementation of the three lease laws, Commissioner Jang explained, "Some witness interviews are underway," and "Tenant investigations have been completed."

Former Chief Kim raised the jeonse (long-term deposit lease) deposit by 14.1% on his apartment in Cheongdam-dong, Gangnam-gu, Seoul, just before the implementation of the three lease laws last year, which limited rent increases to 5%.

After this fact became known, a civic group filed a complaint with the National Police Agency’s Criminal Investigation Headquarters, alleging that former Chief Kim used insider information to evade the application of the rent ceiling system. The Criminal Investigation Headquarters assigned this case to the Anti-Corruption and Public Crime Investigation Unit of the Seoul Police Agency earlier this month.

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