Public Officials' Speculation 'Yoji-gyeong'... Signs of a 'Second LH Scandal'

Less than Halfway Through the Anti-Corruption Commission's Investigation Period, 55 Reports Including Lawmakers
From Split Purchases to Misuse of Unreleased Industrial Complex Development Information
Typical Corruption Cases...Up to 7 Years Imprisonment or 700 Million Won Fine Upon Detection

A sapling such as a willow was planted on March 10 on a piece of land in Mujinae-dong, Siheung-si, Gyeonggi-do, where allegations of land speculation by some employees of Korea Land and Housing Corporation (LH) in the Gwangmyeong-Siheung new town have been raised. / Siheung = Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced that 55 reports, including those involving members of the National Assembly, have been received just two months after investigating public officials' speculation following the Korea Land and Housing Corporation (LH) scandal. The situation revealed a veritable "menagerie" of speculation schemes, ranging from planned real estate speculation through joint purchases by splitting shares to the misuse of undisclosed information obtained in advance for personal gain, such as industrial complex development. Given that the nature of the offenses is similar to the LH scandal, a significant impact is expected if the reported suspicions are proven true. Since the reporting period continues until the end of next month, the number of speculation reports is expected to increase further.

The Anti-Corruption and Civil Rights Commission (ACRC), the main agency responsible for preventing corruption, announced the interim results of the concentrated reporting period for speculation related to public officials' duties on the 6th. From March 4th to the 30th of last month, 55 reports of suspected speculation were received. The public officials reported included members of the National Assembly, local government heads, local council members, LH employees, and Seoul Housing and Communities Corporation (SH) employees. To protect whistleblowers, the ACRC did not disclose the identities of the reported individuals.

Notably, the methods of misuse reported are similar to those in the LH scandal. Many cases involved typical misconduct where undisclosed information was obtained ahead of the public or stakeholders and exploited for personal gain.

For example, there were reports of land purchases using information about the establishment of industrial complexes in specific areas, or suspicions that information obtained during activities of relevant standing committees was passed on to family or acquaintances to purchase real estate. There were also allegations of joint purchases of urban planning facility sites by splitting shares using undisclosed information, and reports of establishing corporations under family names to concentrate purchases of villas in planned development areas, as well as acquiring farmland worth approximately 1.3 billion KRW in regions with no personal ties.

By type, 35 cases, accounting for 63.6% of the total 55, involved the use of internal information. Six cases involved providing special favors to third parties, and two cases violated the Farmland Act during land acquisition.

The ACRC stated that out of the 55 cases, 41 cases excluding 14 with no particular charges are either under investigation by investigative agencies or being examined internally. Six cases with clear signs of speculation suspicion were transferred to the government joint special investigation headquarters, and three cases that were difficult to judge were referred for investigation. One case under prosecution was sent to the Supreme Prosecutors' Office. The remaining 31 cases are under investigation. An ACRC official explained the reason for sending nine out of ten cases to the special investigation headquarters and one case separately to the Supreme Prosecutors' Office: "One case is already under prosecution by the prosecution, so it was sent to the Supreme Prosecutors' Office to avoid duplicate investigations."

According to the Anti-Corruption and Civil Rights Commission Act, if a public official is caught using internal information for personal gain, they may face imprisonment of up to seven years and a fine of up to 70 million KRW, and any financial gains can be confiscated or recovered.

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