[Comprehensive] LH Land Speculation Investigation Expands to Park Geun-hye Administration…Opposition Says "Even Mentioning Diversion Is Painful"

Government Expands Land Transaction Investigation to Park Geun-hye Administration
Opposition: "Unfortunate to See Moon Administration Recall Past Whenever Cornered"

[Asia Economy Reporter Heo Midam] As allegations of speculation by employees of Korea Land and Housing Corporation (LH) in the 3rd New Towns in Gwangmyeong and Siheung, Gyeonggi Province continue, the government announced that it will expand the investigation scope back to the Park Geun-hye administration, sparking controversy in the political arena. The opposition party has labeled this as 'muddying the waters' and launched an offensive.

Bae Jun-young, spokesperson for the People Power Party, said in a verbal statement on the 8th, "It pains me even to say 'muddying the waters,'" sarcastically adding, "The Moon Jae-in administration has finally brought up the previous administration. I was wondering why this story hadn't come up yet."

He continued, "Since we're at it, I hope they thoroughly root out corruption retroactively across all administrations without setting a deadline," and criticized, "Every time they are cornered, the Democratic Party and the Moon Jae-in administration recall old matters. I just feel sorry for them. Are they really that insecure?"

Earlier, Choi Chang-won, the head of the government joint investigation team and 1st Deputy Director of the Office for Government Policy Coordination, held a briefing that day and said, "We are verifying transaction records from December 2013, five years prior to December 2018 when the 3rd New Town sites were announced." December 2013 was during the Park Geun-hye administration, meaning the investigation into the 'LH scandal' will include not only the current administration but also the Park Geun-hye administration.

Pedestrians are passing in front of the headquarters of Korea Land and Housing Corporation (LH) in Chungmugong-dong, Jinju-si, Gyeongnam. [Image source=Yonhap News]

Choi explained, "Since it is quite expected that speculation (land speculation) was considered even before the designation of the new town districts, we are verifying transaction records from December 2013."

Regarding this, Lee Jun-seok, former Supreme Council member of the United Future Party (the predecessor of the People Power Party), also pointed out that this was an 'expected reaction.'

Two days before the government announcement, on the 6th, Lee predicted on his Facebook, "This is how I foresee the conclusion of the LH case: 'Such things also happened during the Park Geun-hye administration,'" adding, "When people are desperate, they tend to grab the most familiar weapon."

On the same day, through his Facebook, he criticized, "The Democratic Party will never stop loving 'Lee Myung-bak and Park Geun-hye,' and the monkeys are lining up to enter the abyss."

Choi Chang-won, the First Deputy Minister of the Office for Government Policy Coordination, held a briefing on the afternoon of the 8th at the Government Seoul Office regarding the establishment of the Government Joint Special Investigation Headquarters (Special Investigation Headquarters) and the investigation related to the speculation allegations of Korea Land and Housing Corporation (LH) employees in the 3rd New Town project.
[Photo by Yonhap News]

Meanwhile, the exclusion of the prosecution and the Board of Audit and Inspection from the investigation into the 3rd New Town real estate speculation has also caused controversy. In the past, the prosecution led investigations into real estate speculation cases related to the development of the 1st and 2nd New Towns.

Kim Woong, a People Power Party lawmaker and former prosecutor, commented, "If you want the investigation to succeed, it is common sense to entrust it to the agency with investigation experience. Like all investigations, experience is important," and questioned, "I am curious about the intention behind excluding the prosecution, which has abundant investigation experience, from the real estate speculation investigation under the pretext of investigation authority adjustment."

He added, "If the prosecution's scope of investigation is limited, it will be difficult to pursue corruption by those in power," emphasizing, "We will increasingly fall into the swamp of unfairness. To help young people escape from the despair of the 'unhappiness battle,' this real estate speculation investigation must be entrusted to the prosecution."

In response to the controversy, President Moon Jae-in urged that day, "The prosecution should cooperate more closely with the police in sharing investigation know-how and techniques and in discussions to set the direction of the investigation." However, this does not appear to mean that the prosecution should directly lead the investigation or conduct a separate independent investigation.