Special Investigation Unit, "LH Speculation Suspect Key Figure 'Kang Sajang' Transferred Today"

Insider Trading Suspicion
Former Happy City Chief to be Sent Next Week
"Kim Sang-jo's Witness Investigation Completed... Need to Verify Data"

[Asia Economy Reporter Lee Gwan-joo] The key figure in the LH 3rd New Town speculation allegations, known as "Gang Sajang," will be handed over to the prosecution.

On the 17th, according to the Government Joint Special Investigation Headquarters (Special Investigation Headquarters), the Special Investigation Unit for Real Estate Speculation Crimes of the Gyeonggi Southern Provincial Police Agency will send two people, LH employees Kang Mo (57) and Jang Mo (43), to the prosecution on charges including violation of the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission.

Kang and others are suspected of jointly purchasing 5,025㎡ of land in Garim-dong, Siheung-si, Gyeonggi Province, on February 27 last year, using internal information, along with other current and former LH employees, for 2.25 billion KRW. The current market price of this land has risen to 3.8 billion KRW.

In July of the same year, they divided the land into four parcels of 1,163㎡, 1,167㎡, 1,288㎡, and 1,407㎡ respectively. There are suspicions that this was to increase the land compensation (compensation in land instead of cash) given when land over 1,000㎡ is expropriated. Additionally, Kang planted king willow trees, measuring 180?190 cm in length per square meter, on the purchased field. This rare species of tree is usually planted one per 3.3㎡ (1 pyeong). There are also suspicions that Kang, who is well aware of the compensation payment criteria, intended to receive a larger compensation amount.

Lee Mo, a former head of the Administrative City Construction Agency (Happy City Agency), who is suspected of purchasing land after retirement using internal information, is expected to be sent to the prosecution soon. A Special Investigation Headquarters official explained, "It is in the final stages, and we plan to send it by early next week at the latest," adding, "The person denies the charges, but we judge that internal information was used."

Investigations are also ongoing into former Blue House Policy Chief Kim Sang-jo, who is accused of raising the jeonse deposit of his apartment in Cheongdam-dong, Seoul, by 14% two days before the enforcement of the "Lease Protection Act," which limits the increase in jeonse deposits to 5%. A Special Investigation Headquarters official said, "Necessary witness investigations have been mostly completed," but added, "There are additional materials to verify."