Song Eon-seok "LH Gives Work to Companies with Retired Employees"... Allegations of Preferential Treatment for Former Officials

On the morning of the 9th, the Korea Land and Housing Corporation (LH) Gwangmyeong-Siheung Project Headquarters in Gwangmyeong, Gyeonggi Province. (Photo by Yonhap News)

[Asia Economy Reporter Geum Bo-ryeong] The Korea Land and Housing Corporation (LH) has been accused of awarding more than 40% of the total private contract amount to 11 architectural firms that employ its former retirees. This is the so-called 'preferential treatment for former officials' suspicion.

According to Song Eon-seok, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, an analysis of the 'Status of Architectural Design Competition and Construction Management Service Contract Awards' data received from LH confirmed that among the top 20 architectural firms by contract amount that won private contracts from LH last year, 11 firms had representatives or executives who are former LH employees.

Among the private contracts worth 225.2 billion KRW that LH signed last year, the contract amount signed by these 11 firms amounted to 94.88531 billion KRW, accounting for 42.1% of the total. The firm A, which recorded the highest contract amount last year (17.3206 billion KRW), reportedly has a former vice president of the Korea Housing Corporation, LH’s predecessor, and a former head of LH’s Public Housing Planning Department serving as a team leader. Firm B, ranked second in contract amount (15.6563 billion KRW), is also known to have three co-representatives who are former Korea Housing Corporation employees.

Song’s office explained, "According to industry insiders, including firms whose executives’ backgrounds are not publicly disclosed, it is speculated that over 90% of the top 30 firms by contract amount have recruited former LH employees. In reality, companies that do not employ former LH staff find it difficult to win contracts."

Regarding the preferential treatment controversy, LH stated, "We comply with the private contract regulations stipulated in the National Contract Act and proceed with contracts for all service projects including construction."

Song emphasized, "Amid the great shock to South Korea caused by LH employees’ land speculation, the revelation that LH has been funneling hundreds of billions of won worth of work through preferential treatment for former officials has pushed public anger to the peak. We must uncover the substantive truth through a national audit and prosecution investigation, punish those involved severely, and completely reorganize LH, which has been solely focused on enriching itself without regard for the public."

This content was produced with the assistance of AI translation services.