2000 People Under Special Investigation Including 'Real Estate Speculation'... 31.6 Billion KRW Seized and Recovered

[Asia Economy Reporter Lee Gwan-joo] The government joint special investigation headquarters (Special Investigation Headquarters, SIH) investigating real estate speculation allegations triggered by Korea Land and Housing Corporation (LH) has expanded its investigation targets to over 2,000 people. The investigation is also expanding to violations of the Farmland Act and planned real estate speculation.

On the 3rd, the SIH held a briefing at the National Police Agency and announced, “We are currently investigating and examining a total of 490 cases involving 2,006 people, including real estate speculation using insider information, illegal farmland acquisition, and planned real estate speculation.” Among them, 11 individuals, including public officials, LH employees, and local council members who acquired real estate using insider information, have been arrested, and arrest warrants have been requested for 12 others. Additionally, 199 people deemed to have sufficient evidence of wrongdoing have been referred to the prosecution.

By category, the main crackdown target group for real estate speculation allegations includes 1,071 people. Illegal farmland purchases for speculation purposes account for the largest number at 523, followed by 478 for misuse of insider information, 48 for real estate transactions under borrowed names, and 22 for other offenses. Regarding illegal real estate activities such as planned real estate speculation, 935 people are under investigation. This includes 259 for illegal real estate acquisition, 190 for illegal resale of pre-sale rights, 159 for planned real estate speculation, 88 for illegal land use changes, and 54 for name trust transactions.

Among the investigation targets, there are 240 public officials, including 4 high-ranking officials and 11 local government heads. There are 5 members of the National Assembly, 48 local council members, and 60 LH employees. Regarding investigation leads, 180 cases were reported or petitioned by civic groups, 35 cases were requested for investigation by local governments or other agencies, and 275 cases were identified and investigated by the police themselves. Since the police reporting center began operating on March 15, 1,018 reports have been received. The SIH has forwarded 207 of these cases to the relevant provincial police agencies for fact verification.

The SIH is also accelerating the recovery of criminal proceeds. Pre-indictment seizure and confiscation preservation have been completed for real estate worth approximately 31.6 billion KRW illegally acquired by 13 suspects, and related procedures are underway for 6 other real estate properties.

Furthermore, the SIH is extensively analyzing data on land transactions in LH project areas, including the 3rd new town development, together with specialized personnel dispatched from the Financial Services Commission, National Tax Service, Financial Supervisory Service, and Korea Real Estate Board. Through this, 210 suspected offshore speculators or name-borrowed traders and 9 planned real estate speculation companies have been identified, and the relevant provincial police agencies have begun preliminary investigations. Additionally, 238 suspicious transactions involving gift tax and capital gains tax evasion through methods such as disguised gifts, name trusts, and under-the-table contracts have been reported to the National Tax Service.

Yoo Jae-sung, SIH public relations officer (National Police Agency Forensic Science Manager), emphasized, “We will continue to conduct strict investigations without exception regardless of status or position, based on law and principles. We will actively utilize advanced investigative techniques such as related data analysis and strengthen our own intelligence gathering to thoroughly uncover illegal activities related to real estate.”

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