'Failed Land Private Contract Purchase'... One LH Employee Arrested for Speculation in Gangneung Yucheon District

Published 17 Sep.2021 08:09(KST)

Police and 49 Individuals Including Lawmakers Under Investigation or Inquiry in 23 Cases

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[Asia Economy Reporter Ra Young-cheol] One of two employees of the Korea Land and Housing Corporation (LH) Yeongdong Project Team, who were under investigation for speculation in the land development project in Yucheon District, Gangneung-si, Gangwon Province, has been detained.

On the 17th, according to the Chuncheon District Court Gangneung Branch, a detention warrant was issued for LH employee A (57) at the request of the prosecution on charges of violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission and breach of duty. The detention warrant for accomplice B (56) was dismissed.

Mr. A is accused of speculation in the so-called 'President Kang' case, involving the use of insider information to speculate in the 3rd New Towns of Gwangmyeong and Siheung. He is also charged with purchasing four plots owned by LH through private contracts in 2015 along with a Nonghyup executive and others, then selling them in 2019 for a profit of 600 million won.

Mr. A is also suspected of committing another speculation crime in Yucheon District around the same time, and Mr. B, for whom a detention warrant was also requested, is known to have been involved in this case.

They reportedly used a method of purchasing land through private contracts after two failed public bids.

Meanwhile, the Gangwon Police have conducted preliminary investigations or investigations targeting 49 people in 23 real estate speculation cases, including public officials and employees of public institutions.

Among them, investigations for 25 people in 16 cases have been concluded, resulting in one detention and five non-custodial indictments. Investigations are ongoing for 24 people in the remaining seven cases.