Special Investigation Unit, 'Speculation Allegations' Yang Hyang-ja and Yang Yi-won-young Not Indicted... "No Use of Insider Information"

2319 Investigated Internally and Externally... 14 Arrested
Minister Jeon Hae-cheol Requests Arrest Warrants for Former Aides

Yang Hyang-ja, Chair of the Semiconductor Special Committee of the Democratic Party of Korea. / Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Gwan-ju] The government joint special investigation headquarters (Special Investigation Headquarters, SIH), which is investigating real estate speculation allegations triggered by Korea Land and Housing Corporation (LH), has confirmed that it has decided not to indict two Democratic Party lawmakers, Yang Hyang-ja and Yang Yi-won-young, who were suspected of speculation.

Choi Seung-ryeol, head of the SIH special investigation team (director of the National Investigation Headquarters Investigation Bureau), said to reporters on the 17th, “We have decided not to indict two lawmakers who were under investigation due to complaints and petitions.”

The two lawmakers subject to the non-indictment decision announced by the SIH are reported to be Representative Yang Hyang-ja and Representative Yang Yi-won-young. Representative Yang purchased 3,492㎡ of land in Samhwa-ri, Bibong-myeon, Hwaseong-si, Gyeonggi Province in October 2015, raising suspicions that she bought the land anticipating development benefits.

However, according to the SIH investigation, at that time Representative Yang was not a sitting lawmaker but was employed at Samsung Electronics, so she was not in a position to use insider information. It was also found that she purchased the land after the Hwaseong Bibong public housing district plan was approved and announced in September 2014, a year earlier. In other words, it cannot be considered speculation using insider information. Representative Yang previously explained, “I bought the land when I was promoted to an executive at Samsung, based on a recommendation from an acquaintance, with the intention of building a country house and preparing for retirement.”

Democratic Party of Korea Representative Yang Yi-won-yeong. [Image source=Yonhap News]

In the case of Representative Yang Yi, it was revealed that her mother, Ms. Lee, purchased a 66.11㎡ share of land in Gahak-dong, Gwangmyeong-si, Gyeonggi Province in August 2019, which caused controversy. This area is near the planned 3rd New Town. However, Representative Yang Yi was also not a sitting lawmaker at the time and was not in a position to use insider information. It was confirmed that the land purchased by her mother was bought through a planned real estate company along with an acquaintance.

Currently, there are a total of five lawmakers under investigation by the SIH. With the non-indictment decision for Representatives Yang Hyang-ja and Yang Yi-won-young, three lawmakers remain under active investigation. Among them, Representative Kang Ki-yoon of the People Power Party is currently under forced investigation, including a search and seizure. Head Choi emphasized, “We are objectively verifying facts without distinguishing between ruling and opposition parties to determine the presence or absence of charges.”

As of today, the SIH’s investigation and internal investigation targets total 583 cases and 2,319 people. By type, 1,214 people are suspected of speculation using insider information, and 1,105 are related to planned real estate companies. Among them, 14 have been detained, and currently, arrest warrants have been requested for three suspects submitted by the prosecution: Han, a former aide to Minister of the Interior and Safety Jeon Hae-cheol; a member of the Shinan County Council in Jeollanam-do; and a member of the Asan City Council.

Among the investigation and internal investigation targets are public officials including five lawmakers, five high-ranking officials, 80 national public officials, 10 local government heads, 50 local council members, and 64 LH employees.