[2021 National Audit] After Criticism of 'Hwacheon Daeyu Delayed Investigation'... Police Chief Says "Initial Judgment Was Wrong"

Controversy Over Overlapping Investigations by Police and Prosecutors: "Joint Investigation Headquarters Is Efficient"

Kim Chang-ryong, Commissioner of the National Police Agency, appeared at the National Assembly's Public Administration and Security Committee's audit of the National Police Agency held on the 5th at the National Police Agency in Seodaemun-gu, Seoul, and took the witness oath. Photo by the National Assembly Press Photographers Group

[Asia Economy Reporter Lee Gwan-joo] On the 5th, during the National Assembly's Public Administration and Security Committee's audit of the National Police Agency, criticism continued regarding the police's 'delayed investigation' of Hwacheon Daeyu Asset Management (Hwacheon Daeyu). Kim Chang-ryong, Commissioner of the National Police Agency, lowered himself by saying, "The initial judgment was wrong."

The National Police Agency received information about suspicious fund flows related to Hwacheon Daeyu from the Financial Intelligence Unit (FIU) of the Financial Services Commission in April. The police assigned the case to the Yongsan Police Station in Seoul and began a pre-investigation before formal registration, and at the end of May, they questioned former Hwacheon Daeyu CEO Lee Sung-moon as a witness.

However, without transitioning to a formal investigation, the pre-investigation continued, and only after controversy spread last month did the police assign all related cases to the Gyeonggi Nambu Provincial Police Agency and form a dedicated investigation team. Both ruling and opposition committee members criticized the initial investigation, pointing out problems with the delay of over five months before the formal investigation began.

In response to the committee members' criticism, Commissioner Kim bowed his head and said, "I have nothing to say about the mistake in the initial judgment." He added, "I emphasize that it is not true that the police lacked investigative capability or intentionally tried to cover up. We will investigate thoroughly and swiftly with determination and maximum capability more than ever."

Nam Gu-jun, head of the National Police Agency's National Investigation Headquarters, also said, "There is great public interest, and the initial response is regrettable," adding, "We are currently adjusting the investigation system and conducting the investigation under my responsibility."

Currently, investigations related to Hwacheon Daeyu are being conducted simultaneously by both the police and the prosecution. Amid this situation, demands from ruling and opposition lawmakers for the establishment of a joint investigation headquarters have continued. Commissioner Kim stated, "It would be efficient to form a joint investigation headquarters involving the entire government, like the Korea Land and Housing Corporation (LH) case." This appears to be a reference to the government joint special investigation headquarters formed in March when allegations of public officials' real estate speculation using insider information surfaced.

However, regarding the introduction of a special prosecutor, Commissioner Kim refrained from commenting, saying, "I do not think it is appropriate to express an opinion."