'Jeonse Price Increase Allegation' Kim Sang-jo Completes Police Investigation... "Investigation to Conclude Soon"

Summons Investigation on the 5th of This Month
Final Review on Application of 'Misuse of Business Secrets' Charge

Former Blue House Policy Chief Kim Sang-jo is giving a farewell speech at a briefing held at the Blue House Chunuchwan on March 29. [Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] The government joint special investigation headquarters (Special Investigation Headquarters), which is investigating real estate speculation allegations, has summoned and questioned former Blue House policy chief Kim Sang-jo, who is suspected of raising the jeonse deposit prices using insider information, and is reviewing whether to take legal action.

Yoo Jae-sung, the Special Investigation Headquarters' public relations officer (Police Agency Forensic Science Manager), told reporters on the 8th, "Former Chief Kim appeared before the Anti-Corruption and Public Crime Investigation Unit of the Seoul Metropolitan Police Agency on the 5th and was questioned," adding, "We are currently conducting a legal review, and the investigation will be concluded soon."

Former Chief Kim is suspected of raising the jeonse deposit price of his apartment in Cheongdam-dong, Seoul, which he owns, by 14% two days before the implementation of the so-called 'Three Lease Laws.' The Association of Judicial Exam Candidates filed a complaint against former Chief Kim at the end of March for violating the Anti-Corruption and Public Interest Whistleblower Protection Act.

After receiving the complaint, the police assigned the case to the Seoul Metropolitan Police Agency and conducted complainant investigations and witness interviews, including tenants, in April. Subsequently, last month, they first investigated former Chief Kim's wife, who is a co-owner of the property, and then completed the investigation of former Chief Kim.

The police are conducting a final legal review on whether to apply the charge of using official secrets under the Anti-Corruption and Public Interest Whistleblower Protection Act against former Chief Kim. However, it is reported that no separate search and seizure or other coercive investigations have been conducted against him.

Following the emergence of the allegations, former Chief Kim expressed his intention to resign on March 29, saying, "I deeply apologize for causing great disappointment to the public at a critical time when we must make every effort to eradicate real estate speculation," and President Moon Jae-in immediately accepted his resignation. It was widely regarded as a de facto dismissal.

In addition, regarding the controversy over the 'ghost building' of the Korea Customs Service's Customs Valuation and Classification Institute (KCCI) in Sejong City, three officials, including those responsible for the building's construction, have been booked by the police. Public Relations Officer Yoo explained, "Earlier this month, we conducted searches and seizures at the Customs Service, KCCI, and the Administrative City Construction Agency (Happiness Agency), and are analyzing the secured materials and continuing the investigation." Also, regarding former Blue House Anti-Corruption Secretary Kim Ki-pyo, who resigned amid real estate speculation allegations, the complainant investigation has been completed, and witness interviews are underway.

Meanwhile, pre-indictment seizure and confiscation measures for recovering criminal proceeds have increased to 32 cases worth approximately 78.9 billion won. Among them, 4.6 billion won related to the Guri Logistics Complex development speculation case under investigation by the Seoul Metropolitan Police Agency and approximately 260 million won related to road land in Gyeryong City, Chungnam, under investigation by the Chungnam Police Agency have been subject to seizure measures.

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