EXPANSION OF LH SCANDAL INVESTIGATION

[Anchor Lead]

Investigation into the land speculation scandal involving the Korea Land and Housing Corporation(LH) is expanding to provincial city councilors and public officials. Police carried out simultaneous raids at offices and residences of councilors and civil servants suspected of engaging in property speculation. The prosecution also set up a team to assist the police.

[Pkg]

Investigators barged into the office of a municipal councilor of Siheung city in Gyeonggido Province suspected of land speculation.

[Soundbite] "Were there records related to development projects? Was there evidence pointing to the daughter's land investment activity?"

The councilor's daughter bought land in the city in 2018 and built a two story building on the plot the following year, raising speculations she was going after compensation related to a development project set to take place in the area. The councilor who was affiliated with the ruling Democratic Party has left the party since the allegations emerged.

[Soundbite] Local resident(VOICE MODIFIED) : "The building went up so quickly so I figured the owner must know about the development project."

[Soundbite] Local realtor(VOICE MODIFIED) : "Priority purchase rights, estimated at around 500 million won and more, are given to those with property holdings on designated development sites."

The police have also raided the home and office of a government employee in Gwangmyeong city. A complaint was filed against the employee over the purchase of forest land with family members in a prospective development area in July last year. In Pocheon also in Gyeonggido Province, police are looking into a City Hall employee who took out a 4 billion won loan to buy land and a building in an area near the site for a new train station. The official who was in charge of urban railway extension projects argues that the train station project was publicized information. The Busan Metropolitan Police Agency also conducted a search at the Busan Metropolitan Corporation over real estate bidding allegations involving a former corporation official.
The official was in charge of land allotment for a new city town project and went on to forge paperwork to receive a plot of commercial land for himself. The misconduct was uncovered and the official was fired late last year. Police believe the individual may have abused his status in the bidding process. As such, the land speculation probe is widening by the day and the police have even opened a center to receive related tips from the public. Over 70 reports came through the tip line on the first day alone.
Meanwhile the prosecution has also set up a team to assist the police while deciding to directly investigate serious crimes in six major areas such as corruption. Also during a meeting of ranking prosecutors chaired by the justice minister, participants again proposed the need to revise an enforcement ordinance that restricts direct investigations carried out by prosecutors.