Anchor: The alleged land speculation by employees of the state-run Korea Land and Housing Corporation(LH) prompted Prime Minister Chung Sye-kyun to issue a public apology on Tuesday, as well as a police raid of the company's offices. The issue has also become a hot potato ahead of April's Seoul and Busan mayoral by-elections.
Choi You Sun reports.

Report: At a Cabinet meeting on Tuesday, Prime Minister Chung Sye-kyun apologized to the public for the disappointment and betrayal likely felt amid allegations that employees at a state housing development corporation engaged in land speculation.

Chung said the government, which is exerting all efforts toward eradicating property speculation and stabilizing the housing market, takes to heart the gravity of the latest accusations. 

The prime minister pledged to thoroughly investigate every allegation, stressing a zero tolerance policy towards any unlawful act found in the process.

The remarks came as the police raided the offices of the Korea Land and Housing Corporation(LH), as well as the residences of the 13 employees implicated.

The police have also launched an investigation into the employees on charges of violating the anti-corruption law. All the suspects have been placed under travel bans.

According to LH documents submitted to ruling Democratic Party(DP) Rep. Park Sang-hyuk on Tuesday, the 13 employees purchased 12 plots of land in the Gyeonggi cities of Siheung and Gwangmyeong priced at over ten billion won between August 2017 and February 2020.

The employees are accused of using insider information for the purchases, as both cities were later announced as locations in a large government development project.

The scandal has become a political hot potato, especially as the rival parties brace for two important mayoral by-election races in Seoul and Busan next month.

The main opposition People Power Party(PPP) has urged President Moon Jae-in to apologize and dismiss Land Minister Byeon Chang-heum and for the National Assembly to conduct an investigation.

The PPP also criticized the ruling camp for excluding the prosecution in the on-going interagency investigation, in a likely attempt to conclude that the alleged speculation was individual deviation, rather than corruption within the administration.

The DP, for its part, has pledged to crack down on land speculation through creating harsher punishment and seeking ways to prevent such activities in the public sector.
Choi You Sun, KBS World Radio News.