Suspicion of Land Speculation Based on 'Information Obtained from Work'... LH Employee Arrested

A current employee of Korea Land and Housing Corporation (LH), Mr. A, who is accused of purchasing land using undisclosed information obtained while working in the Gwangmyeong·Siheung new town project department, is attending a pre-arrest detention hearing at the Ansan branch of Suwon District Court in Ansan, Gyeonggi Province, on the morning of the 12th.

[Asia Economy Reporter Choi Dae-yeol] An employee of the Korea Land and Housing Corporation (LH) and his acquaintance, who are accused of land speculation using undisclosed information obtained while working in the Gwangmyeong and Siheung new town project departments in Gyeonggi Province, were arrested on the 12th.

The Ansan Branch of Suwon District Court conducted a pre-arrest detention hearing (warrant review) for LH employee A and acquaintance B, who are suspected of violating the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission, and issued arrest warrants. Judge Kang Su-jeong, in charge of warrants, stated, "The criminal charges are substantiated, and there is a risk of evidence destruction and flight," explaining the reasons for issuing the warrants.

They are accused of purchasing 22 land parcels under 36 different names in the Noonsadong area of Gwangmyeong, a 3rd phase new town, from March 2017 to December of the following year. It is reported that A worked in the 3rd phase new town development department in early 2017 and was involved in overall tasks such as reviewing or deciding the timing of lifting development restrictions in the expected new town areas at that time.

A purchased land under the names of family, friends, and acquaintances instead of his own. The timing of each purchase coincided with the period when specific development-related decisions were finalized at A’s workplace, raising suspicions that he shared internal information with those around him for speculation. The police investigating this case also confirmed circumstances where A provided development information on the Gwangmyeong and Siheung new towns to individuals related to the LH Jeonbuk Headquarters, who were suspected of remote speculation in the 3rd phase new towns.

On the 8th, the court accepted the police’s pre-indictment seizure request for four land parcels totaling approximately 17,000 square meters purchased by A. This is a court order that prevents the suspect from arbitrarily disposing of illegal profit assets subject to seizure before a final verdict is reached.