Former LH Executive Receiving Bribes in Rental Housing Purchase Process... Incheon Police Conduct Search and Seizure

Eight Locations Including Broker's Residence and Seoul Gangnam Real Estate Agency Corporation Targeted

[Asia Economy Reporter Park Hyesook] A former executive of the Korea Land and Housing Corporation (LH) is under police investigation for accepting bribes from a broker related to the purchase rental housing project.

The Incheon Metropolitan Police Agency's Special Investigation Unit for Real Estate Speculation Crimes conducted a search and seizure on the morning of the 28th, deploying 29 investigators to search eight locations, including the residence of A (43), the former head of the Housing Purchase Department at LH Incheon Headquarters, who is suspected of bribery.

The search targets also included the residence of broker B (30), who is suspected of offering bribes to A, as well as the corporate office of a real estate agency located in Gangnam, Seoul.

A is suspected of handling the purchase rental project at the LH Incheon Headquarters Housing Purchase Department from 2019 to last year, buying unsold officetels from construction companies in bulk through B and receiving commissions in return.

Purchase rental housing is a government project where villas or officetels are bought and then rented out to low-income households without homes at prices lower than market value. This year alone, LH plans to purchase about 44,000 such units.

After A's misconduct was uncovered, the LH Audit Office reportedly investigated the possibility that the acts were carried out on an organizational level, conducting inquiries into executives and employees at the Busan and Daegu headquarters.

Subsequently, LH requested an investigation of A by the Incheon Nonhyeon Police Station at the end of last month, and the Nonhyeon Police Station, considering the seriousness of the case, transferred it to the Incheon Metropolitan Police Agency's Special Investigation Unit for Real Estate Speculation Crimes.

The police plan to summon A and B for questioning once the analysis of the seized materials is complete. A has currently been dismissed.

A police official stated, "We will thoroughly investigate illegal activities such as bribery by analyzing related ledgers and digital evidence seized and conducting supplementary investigations."

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