Prime Minister's Office Leads Joint Investigation with Ministry of Land,
Opposition Says "No Scapegoating," Pushes for Parliamentary Inquiry
Ruling Party's 'Achilles' Heel' Real Estate Corruption... Weak Grounds to Oppose National Investigation
Joo Ho-young, floor leader of the People Power Party, is attending the Emergency Measures Committee meeting held at the National Assembly on the 15th and delivering an opening remark. Photo by Yoon Dong-joo doso7@
[Asia Economy Reporter Koo Chae-eun] The People Power Party is set to push for a parliamentary inquiry into the allegations of land speculation related to the Korea Land and Housing Corporation (LH) ‘3rd New Town’ development. As suspicions arise that the land speculation by LH employees is just the “tip of the iceberg,” there is a call for a parliamentary investigation by both ruling and opposition parties, separate from the Prime Minister’s Office-led full-scale investigation.
On the 4th, Joo Ho-young, the floor leader of the People Power Party, told Asia Economy in a phone interview, “We are reviewing the request for a parliamentary inquiry,” adding, “We will reach a conclusion by the end of today.” Lee Heon-seung, an opposition member of the Land, Infrastructure and Transport Committee from the People Power Party, also said in a phone interview, “We requested the ruling party to hold a standing committee meeting, but there has been no response,” and added, “The parliamentary inquiry will be discussed at the party level.” Accordingly, the People Power Party is expected to discuss the submission of the parliamentary inquiry request, the formation of a special committee for the inquiry, and the scope and duration of the investigation during a video conference of party members on the morning of the same day.
Earlier, on the 2nd, the People’s Solidarity for Participatory Democracy and the Lawyers for a Democratic Society uncovered evidence that from April 2018 to June last year, 14 LH employees in the metropolitan area, along with their spouses and family members, purchased a total of 10 plots of land measuring 23,028㎡ (7,000 pyeong) for about 10 billion won. The suspicion is that employees of public institutions under the Ministry of Land, Infrastructure and Transport obtained advance information about the selection of new towns and purchased the land aiming for “capital gains.”
The opposition argues that audits or investigations involving the Ministry of Land, Infrastructure and Transport could result in scapegoating or protecting insiders, thus emphasizing the need for a parliamentary inquiry at the National Assembly level. Calls for the prosecution of Minister of Land, Infrastructure and Transport Byun Chang-heum, as well as for a special prosecutor and a hearing, are also increasing.
The ruling party is also responding urgently. The seriousness of the issue is heightened by the fact that LH employees, who are the main agents of housing supply and the executing body of the new town projects, are allegedly involved in organized real estate speculation, which is considered an “Achilles’ heel” of the Moon Jae-in administration. President Moon Jae-in also instructed a full-scale investigation of land transactions involving the 3rd New Town, the Ministry of Land, Infrastructure and Transport, and employees’ families of public institutions, led by the Prime Minister’s Office in cooperation with the Ministry of Land, Infrastructure and Transport.
Since a parliamentary inquiry requires the request of at least one-quarter of the members present and agreement between the ruling and opposition parties, political conflict and difficulties are inevitable during the process. However, as the ruling party is also taking the matter seriously and has little justification to refuse a National Assembly-level investigation, the possibility of realization remains open.
Meanwhile, during the 20th National Assembly, two parliamentary inquiries were held: one on the “Humidifier Disinfectant Incident for Truth-Finding, Victim Relief, and Prevention of Recurrence,” and another on the “Choi Soon-sil Scandal during the Park Geun-hye Administration.” In the 21st National Assembly, the ruling party requested a parliamentary inquiry into Prosecutor General Yoon Seok-youl, and the opposition requested one into the North Korean nuclear power plant document allegations, but both failed to materialize due to lack of bipartisan agreement.
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