Led by the Prime Minister's Office with participation from the Ministry of Land, Infrastructure and Transport
Board of Audit and Inspection, investigation led by the Prime Minister, not the Ministry of Land, Infrastructure and Transport
On the afternoon of the 3rd, people are moving toward the entrance of the Korea Land and Housing Corporation (LH) headquarters in Chungmugong-dong, Jinju-si, Gyeongnam. Photo by Yonhap News
[Asia Economy Reporter Moon Jiwon] The 'Government Joint Investigation Team' set to probe allegations of public officials' speculation in the 3rd New Towns, including the Gwangmyeong-Siheung district, will be launched on the 4th. Accordingly, a large-scale investigation targeting not only the government and public institutions but also frontline local governments is expected to begin in earnest.
Since President Moon Jae-in ordered a 'strict response' just one day after the allegations were raised, the joint investigation team is expected to thoroughly examine land transaction records not only of the employees themselves but also of their families.
According to sources inside and outside the government on the day, the investigation team will be composed mainly of the Prime Minister's Office, the Ministry of Land, Infrastructure and Transport, and local governments. President Moon’s decision to entrust the investigation to Prime Minister Chung Sye-kyun instead of the Ministry of Land, Infrastructure and Transport is interpreted as a signal that the matter is being taken seriously and to exclude Minister Byun Chang-heum, a former LH president, from the investigation.
The joint investigation team plans to conduct a large-scale investigation targeting the Ministry of Land, Infrastructure and Transport, Korea Land and Housing Corporation (LH), Gyeonggi Province Development Corporation, Seoul City, Gyeonggi Province, Incheon, Gwangmyeong, Goyang, Namyangju, Bucheon, Gwacheon, Hanam, and Ansan City. The plan is to conduct a full investigation of land transactions related to the 3rd New Towns by employees and their families affiliated with these departments and organizations to determine whether there was any pre-speculation using insider information.
In particular, to ensure a thorough investigation, the joint investigation team is considering including all employees who could have obtained the relevant information, beyond just the departments involved in designating the 3rd New Towns, as subjects of the investigation. It is also expected that they will look into the possibility of transactions conducted under borrowed names rather than the individuals or their families through the National Tax Service.
However, concerns remain that this investigation might fizzle out. In fact, within the industry, despite the civic group that exposed the allegations filing a public interest audit request with the Board of Audit and Inspection, the government’s decision to entrust the investigation to the Prime Minister’s Office has been criticized as an attempt to exclude Board of Audit and Inspection Chairman Choi Jae-hyung, who has shown a critical stance toward the government.
Since the scope of the investigation is broad and it may be ambiguous to define what constitutes 'insider information' to determine guilt or innocence, thorough investigations by not only the joint investigation team but also the police and prosecution are expected to be necessary to prove the allegations. Lawyer Lee Kang-hoon of Deoksu Law Firm said, "It is important to prove whether investments were made based on information obtained during work," adding, "Judgment should be made based on circumstantial evidence, etc."
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