hankyoreh

The logo of the Korea Land & Housing Corporation (Yonhap News)

The Supreme Prosecutors' Office (SPO) has directed prosecutors' offices nationwide to detain all government employees deemed to have used their position to engage in real estate speculation and to request the maximum sentences permitted by the law.

This declaration of stern response measures by prosecutors comes amid allegations of widespread speculative activities by government officials, which emerged in the wake of a scandal involving speculation on the "Season Three new city project" by employees of the Korea Land and Housing Corporation (LH).

The SPO issued Tuesday directions to 43 prosecutors' offices nationwide for a "concerted response to eradicate real estate speculation." The measures include expanding their dedicated investigation teams for real estate speculation crimes, detaining all public officials deemed to have used their positions to commit speculation crimes, seeking the maximum legally permitted sentences in such cases, and reviewing all real estate speculation-related cases processed over the past five years.

The measures reflect similar directions issued on the LH investigation by President Moon Jae-in while presiding over a 7th Anti-Corruption Policy Consultative Council Meeting for Fair Society the day before.

During that meeting, Prime Minister Chung Sye-kyun suggested establishing dedicated investigation teams in South Korea's 43 prosecutors' offices and deploying over 500 prosecutors and investigators.

The SPO plans to apply a "zero tolerance" approach to government employees' speculation activities, which it characterized as a "crime of corruption that involves exploiting public status and authority to achieve personal gain."

It also warned of stern measures for real estate speculation crimes committed by members of the public, including fraudulent real estate marketing. These include the arrest and investigation of those suspected of speculation on a repeated or commercial basis, along with a major increase in financial penalties.

The SPO further ordered the expansion of dedicated investigation teams for real estate speculation crimes, with one department each in prosecutors' offices nationwide.

The investigation teams are to consist of one chief prosecutor, three to four regular prosecutors, and six to eight investigators. This translates into over 500 prosecutors and investigators to be deployed nationwide.

Additionally, prosecutors plan to review real estate speculation-related cases handled over the past five years. The aim is to collect and analyze information about related crimes, with prosecutors conducting their own investigation if additional examination or revised handling are judged necessary.

While the scope of direct investigations by prosecutors has been narrowed by an amendment of the Criminal Procedure Act, prosecutors are allowed to pursue direct investigations into cases where an investigation was launched after a previous decision not to pursue an indictment on a case referred by police, as well as into other related crimes.

The SPO further announced plans to employ the prosecutors' investigation intelligence capabilities, including those of the investigation intelligence office, to gather speculation-related information to support the prosecutors' investigation or hand it over to the police.

It also pledged to swiftly handle cases involving the divestiture of criminal earnings and investigations forwarded by the police.

"Criminal earnings from speculation are very likely to be concealed in the form of borrowed-name assets," the SPO said, announcing plans to visit earnings from speculation crimes. It also reiterated its previous plans to review cases forwarded by police, with the prosecutors investigating those corresponding to six categories of serious crimes.

The measures have drawn some complaints from prosecutors, who claim that it is "contradictory" for the government to demand a proactive role from prosecutors at a time when their investigative powers have been constrained by adjustments to prosecution and police investigation authority.

For this reason, some are suggesting that it remains to be seen whether the SPO's measures in response to the government guidelines can realistically be an aid to investigations.

"I'm not really sure what practical role we can play by establishing dedicated investigation teams at a time when the scope of direct investigations by prosecutors has been drastically curtailed," said the director of one prosecutors' office in the greater Seoul area.

"The approach of detaining all people believed to have committed speculation crimes does not appear realistic either, since the charges would need to be proven before we could request a warrant from a court," they added.

The SPO planned to hold a meeting Wednesday of the directors of prosecutors' offices nationwide under acting Prosecutor General Cho Nam-gwan to discuss concrete measures for stamping out real estate speculation.

The meeting was to be attended by the chief of the SPO's criminal department and first criminal bureau, the directors of 18 district prosecutors' offices nationwide, and the directors of five greater Seoul branches with jurisdiction over the Season Three new cities.

By Jang Ye-ji, staff reporter

Please direct comments or questions to [english@hani.co.kr]