Only 2 Indictments Filed
"Need to Speed Up Investigation" Voices Raised
Cho Nam-gwan, Acting Prosecutor General, is attending a meeting on cooperation in the investigation of real estate speculation suspicions at the Government Seoul Office in Jongno-gu, Seoul, on the morning of the 19th. On the left is Kim Chang-ryong, Commissioner of the National Police Agency. Photo by Kim Hyun-min kimhyun81@
[Asia Economy Reporters Baek Kyunghwan and Lee Gwanju] As the government joint special investigation headquarters (Special Investigation Headquarters) investigating real estate speculation allegations triggered by Korea Land and Housing Corporation (LH) has passed 50 days since its launch, cases being brought to trial are emerging one after another. With search warrants, arrest warrants requests, and case transfers continuing, the prosecution is also becoming busy.
According to the Special Investigation Headquarters on the 29th, as of the 26th, there are 225 ongoing investigations related to real estate speculation using insider information, involving 943 individuals under investigation or inquiry. Among them, 121 individuals were reported to the prosecution as having recognized charges. Investigations into public officials suspected of speculation are ongoing. The Special Investigation Headquarters applied for arrest warrants for two people, including a senior official at Gunpo City Hall in Gyeonggi Province and an acquaintance, the day before. They are suspected of purchasing two plots of land in Dundae-dong, Gunpo City, for 1.48 billion KRW in September 2016 using insider information. The site was reportedly included in the Daeyami Public Housing District in July 2018 and received compensation of over 2.3 billion KRW. Additionally, a search and seizure was conducted at the Yeongwol County Office in Gangwon Province related to the senior official’s speculation allegations.
However, criticism that the investigation needs to speed up continues unabated. In fact, only two cases have led to prosecution so far. On the 23rd, the first public official arrested since the Special Investigation Headquarters was launched, Mr. A, a Pocheon City official, was brought to trial for the first time related to speculation. Mr. A is suspected of purchasing seven plots of land totaling 2,600㎡ near a planned subway station site jointly with his wife in September last year using insider information obtained through his work. Subsequently, on the 27th, Mr. B, an official from Jung-gu Office in Incheon, was indicted. Mr. B is accused of using undisclosed information in April 2014 to purchase land in the Donghwa Village area of Songwol-dong, Incheon, under his wife’s name, earning a profit exceeding 10 million KRW. Both cases share the commonality that public officials used insider information to purchase land and gained speculative profits. As case transfers continue, the number of indictments is expected to increase further.
The prosecution is reinforcing its dedicated investigation team and focusing on reviewing transferred cases, including cooperation with the Special Investigation Headquarters on warrant requests. The Supreme Prosecutors’ Office expanded the ‘Real Estate Speculation Crime Dedicated Investigation Team’ earlier this month, operating with a total of 641 personnel nationwide, including 47 chief prosecutors, 214 prosecutors, and 380 investigators. They are conducting a review of real estate speculation-related cases disposed of over the past five years, collecting and analyzing related crime intelligence during this process. However, given the physical difficulty of reviewing the vast amount of data from five years, each prosecution office has established internal standards to proceed with case reviews.
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