LH Speculation Core 'Gang Sajang' Warrants Hearing... Investigation Turning Point

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Kang Mo, who was in charge of land compensation work at Korea Land and Housing Corporation (LH) and was intensively purchasing land in Gwangmyeong 3rd New Town, has been detained on charges of violating the Anti-Corruption Act and the Farmland Act. He appeared on the morning of the 8th at the Ansan branch of Suwon District Court in Ansan, Gyeonggi Province, for a pre-arrest suspect interrogation (warrant review).
[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] Kang Mo, an LH employee known as the so-called ‘Kang Sajang’ and considered a key figure in the Korea Land and Housing Corporation (LH) real estate speculation allegations, is at a crossroads regarding detention. Whether Kang will be detained is expected to be a turning point for the government joint special investigation headquarters (Special Investigation Headquarters) investigating the speculation case.

According to the Special Investigation Headquarters on the 8th, the Ansan branch of the Suwon District Court will hold a pre-arrest detention hearing (warrant substantive examination) for Kang and one other person at 10:30 a.m. that day. When asked by reporters whether they admitted to the charges, they entered the courthouse without any response. The decision on Kang’s detention is expected to be made late in the afternoon.

Kang, an executive in charge of land compensation work at LH, is suspected of using internal information from 2017 to last year to purchase four plots designated as part of the 3rd New Town in Ok-gil-dong, Gwangmyeong-si, Gyeonggi Province, and Mujinae-dong, Siheung-si, among others, for about 2.25 billion KRW. The current market price of these plots is known to be around 3.8 billion KRW.

Kang is one of the key figures related to the 3rd New Town speculation allegations involving current and former LH employees, first exposed in a press conference on March 2 by the People’s Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun). Subsequently, after a civic group filed complaints against 15 people including Kang, the police began a full-scale investigation, but unlike other speculation cases, the investigation had been sluggish. Regarding this, the Special Investigation Headquarters explained, "There are many things to verify." The police applied for an arrest warrant for Kang only on the 17th of last month, two months after starting the investigation, but the prosecution rejected it, citing the need for supplementary investigation. After conducting additional investigations, they reapplied for the warrant on the 28th of the same month, and the prosecution requested the warrant from the court on the 3rd of this month.

Kang’s detention is expected to be a gauge for the Special Investigation Headquarters’ investigation. There are about ten people suspected of speculation linked to Kang. When applying for Kang’s arrest warrant earlier, the Special Investigation Headquarters stated, "This does not mean the investigation is ending immediately; it means the full-scale investigation of LH employees has begun." Securing Kang’s custody is not the conclusion but the starting point of the investigation. Additionally, it could help dispel some of the distrust surrounding the investigation so far. Criticism directed at the Special Investigation Headquarters has mainly focused on the slow investigation of high-ranking officials and early-reported LH employees. If Kang, a key figure in LH speculation, is detained, the investigation is likely to gain momentum.

Meanwhile, the Special Investigation Headquarters is scheduled to receive individual investigation results, including the list, regarding allegations of illegal real estate transactions involving 12 members of the Democratic Party of Korea, announced by the Anti-Corruption and Civil Rights Commission, on the same day. A Special Investigation Headquarters official said, "We will analyze the content and conduct a strict investigation."

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