40 Local Assembly Members from 'Toho' Identified as Main Culprits in Real Estate Speculation

Special Investigation Unit Raids Gumi City Council Members
Easy Access to Regional Development Project Information
Strong Local Bonds, Powerful Authority, Limited External Oversight
Three Factors Combine to Create Speculation Environment

[Asia Economy Reporter Lee Gwan-ju] Local council members, who are the core of 'grassroots democracy,' have become major targets of the government joint special investigation headquarters (Special Investigation Headquarters, SIH) as they are widely implicated in real estate speculation allegations. It is pointed out that the lack of checks on local council members and their overwhelming authority in regional policy-making triggered this situation.

According to the SIH on the 28th, about 40 local council members are currently under investigation for real estate speculation allegations. This number is second only to the 46 Korea Land and Housing Corporation (LH) executives and employees who were the initial subjects of the investigation. This has intensified the SIH's investigation targeting local council members. A, a council member of Goryeong-gun, Gyeongbuk, who was arrested on the 26th, is suspected of purchasing land in the Goryeong area development project site in 2019 under his family's name for over 300 million won.

The SIH also conducted raids on the offices and residences of two council members in Gumi-si, Gyeongbuk, the day before. In addition, speculation allegations involving current and former council members have surfaced indiscriminately across basic and metropolitan councils, including those of Gwangmyeong, Siheung, Anyang, Yongin, and Hanam cities in Gyeonggi Province, as well as Sejong City Council and Incheon City Council, leading to ongoing SIH investigations. An SIH official explained, "Council member A of Goryeong-gun will be referred for prosecution after further investigation," and added, "There will be more arrests among local council members currently under investigation."

Local council members have easy access to information on regional development projects. According to the Local Public Enterprises Act, approval from the local council is required for new investment projects above a certain scale. To approve such projects, detailed information is necessary, naturally allowing council members to obtain information about the development projects. For projects directly promoted by local governments, the council holds the authority to review and approve budgets, so all information on local development projects converges at the local council. Analysts suggest that the combination of strong community ties, overwhelming authority, and limited external oversight has created an environment conducive to speculation.

Meanwhile, the Gwangju Police Agency summoned Ki Young-ok, former director of Gwangju FC and father of professional soccer player Ki Sung-yueng of FC Seoul, as a suspect on charges of violating the Farmland Act. The SIH is also considering summoning Ki Sung-yueng. Additionally, the SIH summoned and investigated Lee, a former head of the Administrative City Construction Agency, who is the highest-ranking former official among the current and former public officials implicated in speculation allegations. It is reported that Lee denied the charges of using insider information during this investigation as well.

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