65 Cases of Public Officials' Speculation Allegations Including 4 National Assembly Members Reported... 21 Referred for Investigation

Anti-Corruption Commission Announces Final Results of 'Public Officials' Job-Related Speculation Reporting Period'

A press conference demanding the dismissal of appointed officials suspected of real estate speculation and the dismantling of Korea Land and Housing Corporation (LH) held on the 2nd in front of the Blue House fountain in Jongno-gu, Seoul. / Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok] Following the Korean Land and Housing Corporation (LH) land speculation scandal, the government received 65 reports of suspected speculation related to public officials' duties over a period of about three months. It was confirmed that four members of the National Assembly were also involved.

According to the results of the 'Intensive Reporting Period for Speculative Acts Related to Public Officials' Duties' announced by the Anti-Corruption and Civil Rights Commission on the 28th, 65 cases of suspected speculation were reported. Those reported include four members of the National Assembly, local government heads, local council members, public officials, LH employees, and SH (Seoul Housing and Communities Corporation) employees. The investigation was conducted from March 4, shortly after the 'LH scandal' became public on March 2, until the 30th of last month.

By type, speculation using insider information was the most common with 40 cases. There were 6 cases of suspected preferential treatment to third parties, 3 cases of suspected violations of the Farmland Act, and 8 other cases.

The Anti-Corruption Commission referred 21 of the 65 cases to the Government Joint Special Investigation Headquarters (Special Investigation Headquarters) and sent 1 case to the Supreme Prosecutors' Office. It was confirmed that 2 cases were recognized as having charges by the Joint Investigation Headquarters and were forwarded to the prosecution with an indictment opinion.

The cases handed over to the prosecution include a case where the chairman of a local council and family members are suspected of using land use plan information to engage in real estate speculation under borrowed names, and a case where a director-level public official in a central government agency acquired farmland and land worth about 1.2 billion won in an unrelated area, raising suspicion of speculation using insider information. Investigations and inquiries are ongoing for 17 cases at investigative and investigative agencies.

Among the cases referred to the Special Investigation Headquarters, representative examples include ▲ a department head-level public official at Company A suspected of speculating by excessively borrowing bank loans using insider information before the designation announcement of land for Public Project B ▲ and Mr. C, a local government building official, who purchased a 'residential lodging facility' several years ago to earn rental income and then sold it at a profit after obtaining advance information about crackdowns from the Ministry of Land, Infrastructure and Transport.

Additionally, the Anti-Corruption Commission stated in a mid-term announcement on May 6 that reports included ▲ purchasing land after learning about the industrial complex development in advance ▲ encouraging family and acquaintances to buy real estate using information obtained during activities of the relevant standing committee ▲ and suspected concentrated purchases of villas in development sites by establishing corporations under family names. If investigations confirm these facts, all will be cases of illegal land speculation.

If a public official profits by using insider information, they may face imprisonment of up to seven years and fines of up to 70 million won under the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission. Property gains may be confiscated or recovered.

Seongwook An, Vice Chairman of the Anti-Corruption Commission and Secretary-General, said, "We aimed to eradicate and raise awareness of real estate speculation by public officials using insider information through corruption and public interest reporting that anyone in the public can participate in." He added, "We will make every effort to ensure the smooth implementation of the 'Public Officials Conflict of Interest Prevention Act,' scheduled to take effect in May next year."

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