Investigation Targets for 'Public Official Speculation' Reach Around 50,000... Potential for Wider Impact

Check Public Officials and Family Land Transactions via Land Transaction Network
Consent Forms Currently Being Collected... Some Call It "Coercive" Resistance
Estimated 50,000 Subjects... Speed Expected Once Consent Obtained
Concerns Over Effectiveness Due to Self-Investigation... Impact Expanding

Minister of Land, Infrastructure and Transport Byeon Chang-heum is briefing on the allegations of speculation by Korea Land and Housing Corporation (LH) employees in the 3rd new towns including Gwangmyeong and Siheung at the joint briefing room of the Government Seoul Office in Jongno-gu, Seoul on the 4th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Jiwon] It has been revealed that the government joint investigation team tasked with probing allegations of speculation by public officials in the 3rd phase new town candidate sites will be investigating around 50,000 individuals. This is because the investigation targets include not only the Ministry of Land, Infrastructure and Transport (MOLIT) and Korea Land and Housing Corporation (LH) but also employees of local governments and their families.

Since the computerized network is in place, it is expected that verifying land transaction records of public officials will not take a very long time. However, if the first investigation results next week reveal that more people than expected were involved in purchasing land in the 3rd phase new towns, there is a possibility that the scale of the investigation will expand and referrals for prosecution will increase, potentially escalating the situation.

According to sources inside and outside the government on the 5th, the government joint investigation team, led by the Prime Minister’s Office, is currently conducting preliminary work to clarify the speculation allegations involving public officials and the 3rd phase new towns.

This investigation will be conducted by querying personal information of public officials from MOLIT and others, their spouses, and direct relatives (parents and children) through the land transaction computerized network operated by the Korea Real Estate Board.

The main investigation targets are approximately 4,000 MOLIT officials and about 10,000 LH employees. Including local government employees and their families, the total number of investigation targets reaches at least 50,000. A government official stated, "For local governments, we need to receive accurate family lists, but currently, the total number of investigation targets including individuals and their families is estimated to be around 50,000."

The government is first collecting consent forms for the provision of personal information from MOLIT and LH employees, allowing the review of their and their families’ land transaction records. Although the number of targets is large, if the land transaction computerized network is used, confirmation of land transaction facts could be completed as early as next week.

However, some employees are reportedly resisting the consent form process as "coercive," which may delay the procedure.

On the previous day, MOLIT Minister Byeon Changheum held an emergency briefing for the public and confirmed the investigation areas as a total of eight locations, including six 3rd phase new towns, Gwacheon district, and Ansan Jangsang district. The investigation targets were defined as MOLIT and LH employees and their spouses and direct relatives, and for local governments, public officials in new town-related departments and their spouses and direct relatives.

Within the industry, concerns have been raised that despite President Moon Jae-in’s policy of "strict response," the effectiveness of the investigation may be limited. Since the investigation scope is limited to public officials and their families, speculation or information leaks through relatives or friends cannot be identified in this investigation. Although the government joint investigation team has been formed, the fact that MOLIT, the main investigation target, is conducting the preliminary investigation has led to ongoing criticism of it being a "self-investigation."

Therefore, regardless of the first investigation results next week, it is expected that the government will find it difficult to avoid controversy for the time being.

If a large number of individuals are found guilty, large-scale investigations and public criticism could make it practically impossible to proceed with government housing policies such as the 3rd phase new towns. Depending on the case, the investigation area could be expanded to the entire new town, potentially causing the government to focus solely on clarifying allegations throughout the remainder of its term.

Even if the conclusion is that very few individuals were caught, doubts about the credibility of the investigation may continue.

A MOLIT official said, "MOLIT is included in the joint investigation team only for the purpose of providing data, and the determination of any illegality will be fairly judged by the investigation team led by the Prime Minister’s Office. Speculation through relatives or friends can also be confirmed through additional investigations targeting employees suspected in the first investigation."