Govt. probe team arrests 20 people, refers 529 others to prosecution over property speculation

The government said Wednesday its special probe team has arrested 20 people and reported over 529 others to the prosecution for further investigation after looking into various allegations of real estate speculation for about three months.

Announcing an interim result of the probe, Prime Minister Kim Boo-kyum said the team, involving the police, and tax and financial authorities, has so far investigated 646 cases and some 2,800 individuals.

It has also seized profits worth some 90.8 billion won ($81.7 million) in connection with various alleged real estate crimes, according to the prime minister.

The team was launched in March following the explosive land speculation scandal involving employees at the state-run LH, or the Korea Land and Housing Corp.

Kim stated that authorities have confirmed various allegations involving former and current public sector employees of various pay grades.

"A large number of civil servants, including former ministerial and vice ministerial level agencies chiefs, heads of local governments, local council members and working-level employees have been found to have used insider knowledge to purchase lands," Kim said at a briefing held at the government complex in Seoul.

Included among those under investigation are 13 lawmakers, 14 local government chiefs and eight senior government officials.

Kim added that as prime minister, he felt "extremely embarrassed over the allegation of illegal activities" of the civil servants under investigation and offered his apology to the public on behalf of the civil servant community.

The LH scandal and the government's failure to curb runaway housing prices have been blamed for the DP's crushing defeat in the April 7 Seoul and Busan mayoral by-elections. The ruling Democratic Party and the government are currently exploring ways to revise housing policy. (Yonhap)