INVESTIGATION RESULTS ON LH SCANDAL

[Anchor Lead]

In the wake of the Korea Land and Housing Corporation employees’ alleged real estate speculation, the government has been investigating public officials’ real estate speculations. The investigation led to the arrest of 34 people and collection of 90.8 billion won in ill-gotten profit.

[Pkg]

Over the past three months, some 2,800 public employees have been investigated for real estate speculation. So far, 34 of them were arrested and 529 were handed over to the prosecution. From the Land and Housing Corporation, government investigators found 151 people including 77 employees in violation of the law, which led to the arrest of four people and questioning of 126 others.

[Soundbite] Kim Chang-yong(Commissioner, Nat'l Police Agency) : "We confirmed that the employees in charge of new urban development projects in Gwangmyeong and Siheung gathered their relatives and acquaintances to commit the crime and arrested the involved parties."

The government expanded its investigation on 399 public officials, including 13 National Assembly members and 14 local government heads. So far, nine have been arrested from this group. The arrested officials range from vice minister-level officials to working-level employees, who used inside information to purchase land.

[Soundbite] Kim Boo-kyum(Prime Minister) : "I’m very ashamed of the government officials’ allegations of wrongdoing and I apologize sincerely to the people."

90.8 billion won gained through real estate speculation were confiscated. The NTS plans to conduct tax investigation on 454 people and collect 53.4 billion won in omitted taxes. Meanwhile, the FSC inspected four financial firms suspected of making illegal loans and requested investigation into 67 people.

[Soundbite] Kim Boo-kyum(Prime Minister) : "Investigation into high-ranking public officials is still ongoing. Please keep your eyes on it until the end."

But now they have decided to announce a finalized plan that substantially reduces the corporation’s key functions, organization and personnel.