Government's Own Investigation into 'LH Incident' Targets 100,000 People? ... Not Possible Without Individual Consent

Choi Chang-won, the First Deputy Minister of the Office for Government Policy Coordination, is holding a briefing on 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 at the Government Seoul Office Building on the afternoon of the 8th. 2021.3.8
Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Sun-hee] The government is conducting a wide-ranging internal investigation into allegations of land speculation by employees of Korea Land and Housing Corporation (LH), but ultimately, without the consent of the investigation subjects, there is no means to enforce the investigation, raising questions about its effectiveness.

According to the Office for Government Policy Coordination on the 9th, the government joint investigation team plans to announce the results of the first investigation into speculation allegations involving Ministry of Land, Infrastructure and Transport (MOLIT) and LH employees related to the 3rd New Town project around the 11th. The first investigation targets a total of 23,000 people, including about 4,500 MOLIT employees, approximately 9,900 LH employees, about 6,000 local government employees, and 3,000 local public enterprise employees.

The joint investigation team intends to transfer these results to the National Police Agency’s National Investigation Headquarters and then promptly begin the second investigation. The second investigation will include not only public officials but also their direct relatives. Choi Chang-won, the head of the investigation team and the first vice minister of the Office for Government Policy Coordination, said at a related briefing the day before, "Including spouses and family members, the second investigation could involve over 100,000 people, so it is an extremely large-scale operation." Regarding the period for conducting the second investigation, he added, "It is difficult to specify the exact timing."

The problem is that for such a vast number of investigation subjects, reaching up to 100,000 people, the government must obtain individual consent forms for the use of personal information to proceed with the investigation. The government lacks the authority to conduct forced investigations, so if individuals do not agree to provide information such as land transaction details, the investigation is fundamentally impossible.

Choi said, "Among the first investigation subjects (public officials), there were no particular cases of refusal to submit consent forms," but added, "There may be various reasons for refusal among spouses or family members." He further stated, "If consent forms are not collected, we will have to receive written explanations and determine whether the reasons are appropriate." This means there are loopholes allowing individuals to evade the investigation by refusing to consent to the provision of personal information.

The core of investigating illegal land speculation is to accurately identify cases such as transactions using pseudonyms or nominees, or unregistered transfers. However, since the government investigation is based on the 'consent' of the parties involved, its limitations are clear, leading some to argue that it is ineffective.

In the political arena, opposition parties are demanding a parliamentary audit. There are also calls for audits by the Board of Audit and Inspection or prosecution investigations. However, the government explains that following the adjustment of investigative authority between prosecution and police, this real estate issue falls under 'livelihood crimes,' making prosecution investigations difficult.

In response, a new proposal has emerged to dispatch some prosecutors to the government joint investigation team. Lee Sang-min, a member of the Democratic Party of Korea, said on his social media on the same day, "All investigative capabilities, including the prosecution, must be fully mobilized," and added, "The LH allegations must be thoroughly uncovered."