POLICE RAID LH OFFICES

[Anchor Lead]

Police conducted search and seizure at the regional headquarters and head office of the Korea Land and Housing Corporation to investigate the allegations of its employees profiting from illegal speculative land purchases. The public is calling for the prosecution to take part in the investigation, since this probe targeting an entire new city project is too vast. But the government is not likely to allow the prosecution’s direct investigation into the scandal.

[Pkg]

Investigators carrying several blue boxes leave a Korea Land and Housing Corporation building.

[Soundbite] "Did you obtain any materials to prove the charges?"

This is the first investigation conducted since LH employees were accused of making illegal speculative land purchases. Some 60 police officers carried out extensive search and seizure operations which took place simultaneously at the Gwacheon-Euiwang and Gwangmyeong-Siheung regional HQs as well at the LH head office located in Jinju, Gyeongsangnam-do Province. The first round of search and seizure was conducted at the regional offices overseeing the areas and employees involved in the illegal speculative land purchases. So far, thirteen employees have been banned from leaving the country and had their homes searched. The police took their mobile phones, computers and electronic documents that could prove they used inside information for property deals. The investigators plan to summon related parties as soon as possible, after looking into the accused employees’ actions and the nature of their work. Other areas of the new city project where interagency probes are underway have not been investigated by the police yet. According to police, the Prime Minister’s Office ordered the cases be sent to investigative authorities as quickly as possible. Regional police agencies will conduct search and seizure and follow proper procedure. The national investigative headquarters will be upgraded to the ‘Joint governmental special investigation headquarters’ and receive assistance from the National Tax Service. A hotline will also be opened up. The Ansan branch office of the Suwon District Prosecutors’ Office launched an investigative team amidst the steady calls for the prosecutors’ participation when reinforcements are needed to solve the case. However, Justice Minister Park Beom-kye remains guarded against immediate involvement by prosecutors. Still, he did leave room for potential prosecutorial investigation into corruption among high-ranking officials.

[Soundbite] Park Beom-kye(Minister of Justice) : "I believe an organized on-site cooperation with the police is possible. This is the essence of the ongoing investigative rights reform."

Minister of the Interior and Safety Jeon Hae-cheol, also stressed the importance of interagency cooperation, but made it clear that prosecutors are not to directly investigate the cases.