LH Employee Acquitted of Land Speculation Using Non-Public Information... Court Says "Prosecution Did Not Investigate"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] A court has acquitted an employee of Korea Land and Housing Corporation (LH) who was indicted on charges of land speculation using undisclosed development information.

The 2nd Criminal Division of the Ansan Branch of Suwon District Court (Chief Judge Nam Cheon-gyu) acquitted LH employee A and two acquaintances, three people in total, on the 9th, who were indicted for violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission (Anti-Corruption and Civil Rights Act).

The court stated, "The specific 'internal information' in the indictment does not contain the content that LH directly implements the project, so it cannot be considered that A conspired with acquaintances to speculate using this information beyond a reasonable doubt."

It added, "Although the prosecutor claims that the defendants used confidential internal information for speculation, they did not investigate what content was contained in the internal information or for what purpose it was created. Considering the timing when the defendants acquired the real estate, there is indeed strong suspicion of speculative crime, but unless the prosecutor changes the indictment regarding the 'internal information,' it cannot be considered that the crime has been proven."

A was indicted on charges of purchasing four plots totaling about 17,000㎡ in the Noonsadong area of Gwangmyeong City for 2.5 billion KRW together with two acquaintances, using confidential information obtained in March 2017 while working in urban development at LH's Gwangmyeong-Siheung Business Headquarters.

According to the Anti-Corruption and Civil Rights Act, if a public official is found to have obtained property or financial benefits by using confidential information learned during official duties, they may face imprisonment of up to seven years or a fine of up to 70 million KRW.

The land purchased by A and others was designated as a public housing district in 2010 but development was halted due to LH's financial difficulties. After the district designation was lifted in 2015, it was managed as a special management area and was selected in February as a development site for the 3rd New Town.

The land they purchased for 2.5 billion KRW was investigated to have increased more than threefold to 10.2 billion KRW as of April, when the police investigation was underway.

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