Police Conduct Search and Seizure at LH Headquarters Over Allegations of Favoritism in Outsourcing Contractor Selection

The police have launched a forced investigation into the Korea Land and Housing Corporation (LH) headquarters and other locations over suspicions of favoritism in the selection process of subcontractors.

Korea Land and Housing Corporation (LH)

On the 14th, the Anti-Corruption and Public Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that they are conducting searches and seizures at five locations, including the LH headquarters in Jinju, Gyeongnam, residences of LH employees, and offices of subcontractors located in Gyeonggi Province, starting from the morning.

While investigating the case of missing rebar in apartments in the Suseo area ordered by LH, the police uncovered evidence that two LH employees gave preferential treatment to a specific subcontractor during the selection process. They have been additionally booked on charges of bribery involving a third party.

In August, the Seoul Metropolitan Police Agency also conducted searches and seizures at seven locations, including the LH headquarters in Jinju, Gyeongnam, and offices of design and supervision companies. At that time, seven individuals were booked on charges including violations of the Building Act. A police official stated, "We are conducting searches and seizures as additional suspicions of favoritism toward a specific company have been confirmed."

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