SUWON -- Police have begun investigating a former aide to Interior Minister Jeon Hae-cheol over allegations that he and his family were involved in a speculative land purchase.

A probe team of Gyeonggi Nambu Police Agency has been conducting raids into five places since this morning, including the Ministry of Land, Infrastructure and Transport and the headquarters of the Korea Land and Housing Corp. (LH) in Jinju, South Gyeongsang Province, in connection with the allegations.

The raids came after the wife of the minister's former aide, whose identity was not made public, was reported to police for alleged violations of the Farmland Act.

The 51-year-old woman is suspected of illegally buying land in Ansan, south of Seoul, by taking out excessive loans that amounted to 70 percent of the purchase money, a month before the development-restricted area became freed for constructing new towns there.

Soon after the allegations were made, the aide was relieved of his post for "health reasons."

Dozens of public sector workers are currently under investigation following allegations that employees of the state housing developer, Korea Land and Housing Corp. (LH), used insider information to purchase farmland in areas that were later designated as public housing development sites.

A government probe team overseeing all speculation cases prompted by the scandal is currently investigating a total of 536 people, including 102 former and current public servants and 32 LH employees, a senior official of the team said.

The scandal has rocked the nation at a time when public discontent over soaring home prices is running high. (Yonhap)