'Limited-Term' Minister Reappointed as LH President... 2·4 Measures in 'Fog' Amid LH Scandal

Minister of Land, Infrastructure and Transport Byeon Chang-heum is attending the "16th Real Estate Market Inspection Meeting of Related Ministers" held at the Government Seoul Office in Jongno-gu, Seoul on the 12th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jo Gang-wook] Byeon Chang-heum, Minister of Land, Infrastructure and Transport, has become an unprecedented 'time-limited minister' who only completed the groundwork for the February 4 supply plan before stepping down. The selection process for the president of Korea Land and Housing Corporation (LH), currently vacant, will restart from scratch. Due to the LH employees' land speculation scandal, the future of the February 4 plan is shrouded in uncertainty.

According to the government and real estate industry on the 13th, the Blue House announced in a briefing the previous day that "Minister Byeon expressed his resignation to President Moon Jae-in, and the president said, '(The minister) has no choice but to show responsibility,'" confirming the president's acceptance of the resignation.

However, it was decided that "to ensure the smooth implementation of the February 4 plan, the groundwork for public-led supply measures and related legislation must be completed," meaning that while Minister Byeon will step down taking responsibility for the LH land speculation scandal, he should finish laying the foundation for the already announced February 4 supply plan before leaving.

On the same day, Minister Byeon stated at the National Assembly Land, Infrastructure and Transport Committee plenary meeting, "I will take responsibility where necessary. I am not attached to my position," but also added, "I will first manage the situation and focus on public-led supply measures such as the February 4 plan, and if my role is not deemed sufficient, I will accept the decision."

Along with this, the LH president position is expected to remain vacant for an extended period.

The Ministry of Land, Infrastructure and Transport announced the previous day that it would request the LH Executive Recommendation Committee to resubmit candidates for the Korea Land and Housing Corporation (LH) president, whose appointment process was underway.

The ministry explained, "Since the candidates who applied for the president recruitment process that began at the end of last year do not have sufficient capability to respond strictly to the current LH situation, we decided to proceed with the re-nomination process."

Recently, the government’s Public Institution Management Committee (PIMC) created a list of candidates for the next LH president and handed it over to the Ministry of Land, Infrastructure and Transport, which was reviewing it. Minister Byeon was to select the final candidate, recommend the appointment to the Blue House, and the Blue House would complete the appointment.

With the LH next president selection process returning to square one, the LH president position will inevitably remain vacant for some time. It is also inappropriate for Minister Byeon, now a 'time-limited minister,' to recommend the next LH president candidate.

The government is currently devising a 'restructuring-level overhaul' and comprehensive improvement plan for LH, and it is expected that after a major reform of LH, a completely renewed LH will appoint the next president.

However, as the responsibility of key institutions executing the government's real estate policy intensifies, doubts are being raised about whether the February 4 plan can be properly implemented.

Since Minister Byeon, the main figure and overall person responsible for the February 4 plan, was dismissed, and the LH employee speculation scandal, which is the main executor, broke out, the momentum for policy implementation is inevitably weakened.

Above all, since Minister Byeon was the previous LH president and the land speculation by LH employees was concentrated during his tenure, public opinion holds him highly responsible.

Follow-up bills for the February 4 plan are also pending in the National Assembly. Originally, the government and ruling party planned to collectively process nine amendments this month, including the 'Urban and Residential Environment Improvement Act' for the February 4 plan and the 'Public Housing Special Act' introducing urban public housing complex projects for high-density development in station areas, semi-industrial zones, and low-rise residential areas, but the LH scandal has put a brake on these plans.

An industry official said, "Trust in the government's core real estate policy institutions and their heads has been lost," adding, "It is difficult for the policy to function properly from design to execution, so there is doubt whether the February 4 plan will proceed as scheduled."

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