Special Investigation Unit's Probe into 'LH-Origin Real Estate Speculation and Planned Real Estate' Targets Over 1,500 Individuals

Increase of 2 High-Ranking Officials
Application for Seizure and Forfeiture Preservation Worth 7 Billion Won

[Asia Economy Reporter Lee Gwan-joo] The government joint special investigation headquarters (Special Investigation Headquarters) investigating real estate speculation allegations triggered by the Korea Land and Housing Corporation (LH) has expanded its investigation targets to over 1,500 people. The scope of the investigation has significantly increased as it expanded from existing real estate speculation allegations to include planned real estate speculation.

At a press briefing on the 12th, the Special Investigation Headquarters announced, "So far, a total of 198 cases involving 868 people related to real estate speculation are under preliminary investigation or investigation." Among them, 6 people have been arrested, and 48 people, who were judged to have sufficient evidence, were referred to the prosecution.

The investigation targets include 4 former and current high-ranking public officials, 48 national government officials, 11 local government heads, and 109 local government officials. There are also 5 members of the National Assembly, 40 local council members, and 45 LH employees who were the origin of the case.

In particular, the number of high-ranking public officials increased by 2 from the previously known 2 former heads of the Administrative City Construction Agency. A Special Investigation Headquarters official said, "They can be considered senior officials of grade 3 or higher," adding, "It is difficult to disclose who they are as the investigation is still ongoing." However, it is known that the Serious Crime Investigation Division of the National Police Agency’s National Investigation Headquarters is not directly conducting the investigation.

By investigation lead, 21 cases were reported by civic groups, 13 cases were requested for investigation by other agencies such as the government joint investigation team, and 150 cases were recognized and investigated independently by the police.

Furthermore, the Special Investigation Headquarters has expanded the investigation to cover all illegal activities related to real estate, including planned real estate speculation and illegal resale of pre-sale rights. Currently, 196 cases involving 698 people are under preliminary investigation or investigation related to this. Among them, 49 people are estimated to be involved in operating planned real estate speculation companies.

Seizure and confiscation preservation measures on the relevant real estate are also ongoing. The Special Investigation Headquarters has applied for seizure and confiscation preservation on 5 cases worth approximately 7 billion KRW and is awaiting the court’s decision. If all applications are accepted, the total amount of seizure and confiscation preservation related to real estate speculation is expected to reach 31 billion KRW.