Jeon Hae-cheol Former Aide Arrested... Investigation Accelerates on 'Insider Information Trading'

Special Investigation Headquarters Expands Investigation Targets Across the Board
Also Responds to Some Criticism of 'Stagnation'

[Asia Economy Reporter Lee Gwan-ju] The joint government special investigation team (Special Investigation Unit, SIU) has been conducting an investigation for over two months into the 'real estate speculation allegations' triggered by employees of Korea Land and Housing Corporation (LH) in March this year. The investigation has expanded comprehensively to include not only LH employees but also members of the National Assembly, local government heads, local council members, and national and local public officials. The number of arrests on charges of using insider information has steadily increased, and new allegations have emerged, showing no signs of the investigation ending.

However, criticism that the SIU investigation is still 'stalled' continues unabated. This is mainly because the investigation into high-ranking officials such as members of the National Assembly has not progressed quickly. In response, the police stated, "We are conducting the investigation strictly regardless of rank," emphasizing that the investigation is proceeding with a sense of urgency.

Former Aide to Jeon Hae-cheol Also Arrested... 15 People Detained

On the 18th, Han Mo, a former aide to Jeon Hae-cheol, Minister of the Ministry of the Interior and Safety, was arrested on charges of land speculation in the Jangsang district of Ansan City, Gyeonggi Province, a third-phase new town. The Special Investigation Unit of the Gyeonggi Southern Provincial Police Agency announced that Han was detained on charges of violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission (Anti-Corruption Act) and the Farmland Act.

Cho Hyung-woo, the presiding judge in charge of warrants at the Suwon District Court Ansan Branch, conducted a pre-arrest interrogation (warrant substantive examination) for Han and issued the warrant, stating that there was a risk of evidence destruction and flight.

Han is accused of purchasing a farmland parcel of approximately 1,500㎡ in Jangsang-dong, Sangnok-gu, Ansan City, in April 2019 for 300 million KRW using insider information while working as an aide to then-National Assembly member Jeon. The land's current value has risen to about 1.2 billion KRW, roughly four times the purchase price. The court also accepted the police's pre-indictment seizure application for the land.

With the issuance of Han's arrest warrant, the number of people detained by the SIU has increased to 15. The SIU has made it clear that it will investigate with the principle of detention for public officials suspected of using insider information for speculation. This includes the first detained case of a public official from Pocheon City, former senior officials of the Gyeonggi Provincial Government, and LH employees.

Yang Hyang-ja and Yang Yi-won-young Not Prosecuted... Most National Assembly Members' Allegations Likely to be Cleared

Investigations into members of the National Assembly and high-ranking public officials are also progressing. However, it is reported that many of the allegations against National Assembly members are likely to be closed without prosecution. Currently, five members of the National Assembly are under investigation by the SIU, but except for Kang Ki-yoon of the People Power Party, who is subject to forced investigation procedures such as search and seizure, the others are expected to be cleared without prosecution. Decisions not to prosecute have already been made for two members of the Democratic Party of Korea, Yang Hyang-ja and Yang Yi-won-young. It is also known that the remaining two are likely to be cleared without prosecution.

Yang Hyang-ja purchased a 3,492㎡ plot of land in Samhwa-ri, Bibong-myeon, Hwaseong City, Gyeonggi Province, in October 2015. There were suspicions that she bought the land anticipating development benefits. However, the SIU investigation found that at the time, Yang was not a sitting member of the National Assembly but was employed at Samsung Electronics, so she was not in a position to use insider information. Furthermore, the land was purchased after the public announcement of the Hwaseong Bibong Public Housing District plan approval in September 2014, a year earlier.

Yang Yi-won-young was also involved in controversy when it was revealed that her mother, Lee Mo, purchased a 66.11㎡ share of land in Gahak-dong, Gwangmyeong City, Gyeonggi Province, in August 2019. This area is near the planned third-phase new town. However, Yang was not a sitting member at the time and thus not in a position to use insider information. It was also confirmed that the land purchased by her mother was acquired through a planned real estate company along with an acquaintance.

Over 2,300 Subjects Under Investigation... "We Will Verify the Facts as They Are"

As of the 17th of this month, the SIU is investigating 583 cases related to insider information speculation allegations and planned real estate companies. The number of subjects under investigation is 2,319, of whom 250 have been referred to the prosecution. After the initial speculation allegations surfaced, the SIU also operated a separate police reporting center from March 15, receiving over 1,100 reports. Investigations based on internal intelligence are also actively underway.

Nevertheless, criticism that the investigation is sluggish continues. At a recent National Assembly Public Administration and Security Committee briefing, members from both ruling and opposition parties criticized the slow pace of the real estate speculation investigation. The police feel somewhat unfair about this. There are reports and complaints with inaccurate facts, and upon investigation, the circumstances often differ or there is insufficient evidence to prove the use of insider information. Choi Seung-ryeol, head of the SIU Special Investigation Unit and director of the National Police Agency's Investigation Bureau, stated, "Regardless of party affiliation, without selective investigation, we are objectively verifying facts as they are and judging allegations. It is hard to accept criticism that the investigation is 'ineffective' just because some allegations were found to be baseless."

However, in the ongoing situation where real estate speculation allegations continue to emerge, there is a need to heed calls for the police to accelerate the investigation. Although it started with LH, speculation allegations have already surfaced nationwide, including local governments, local council members, local public enterprises, and central public institutions. Swift punishment of public officials' speculative behavior, which has aroused public anger, is also the raison d'?tre of investigative agencies.

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