Kim Hyun-jun, New LH President, Pledges "Total Effort for Organizational Reform and Real Estate Stability"

First Non-Real Estate Background Head, Expert in Real Estate Speculation and Tax Evasion
Establishing Measures to Strengthen Internal Controls and Focus on Protecting Actual Users

[Asia Economy Reporter Kangwook Cho] "I will devote all efforts to not only a complete overhaul of the organization but also to establishing sustainable reform measures. Alongside this, I will focus capabilities on implementing policies to stabilize the real estate market."

Kim Hyun-jun, the newly appointed president of Korea Land and Housing Corporation (LH) (photo), officially began his duties on the 26th, announcing a strong reform agenda. This comes four months after the position was left vacant when former president Byun Chang-heum, who led LH for 1 year and 7 months until December last year, moved to become the Minister of Land, Infrastructure and Transport.

Notably, he is the first LH head since the corporation’s integration in 2009?when Korea Land Corporation and Korea Housing Corporation merged?to come from a 'non-real estate' background. Previous LH presidents, including the inaugural president Lee Ji-song who was formerly CEO of Hyundai Construction, as well as Lee Jae-young and Park Sang-woo, all came from construction, land-related industries, or senior public service. Even Byun, the immediate predecessor who served as the shortest-term Minister of Land, Infrastructure and Transport, was an expert with a background as a professor in real estate at Sejong University and as president of SH Corporation.

Kim, a former Commissioner of the National Tax Service with extensive experience in investigating real estate speculation and tax evasion, is well known as an expert in public integrity enforcement, having been seconded to the Presidential Secretariat’s Office of Public Officials and the Office of the Senior Secretary for Civil Affairs to help establish public service discipline. Industry analysis suggests that the leadership LH currently needs is not necessarily a real estate or housing expert but someone capable of establishing public service discipline and driving reform, which is why Kim, known for his strong leadership, was selected.

Accordingly, Kim Hyun-jun plans to strengthen internal controls by establishing a system for LH employees to report, register, and verify real estate transactions, and to focus all organizational capabilities on expanding housing supply, eradicating speculation, and protecting genuine demanders in order to actively implement the government’s real estate policies.

Born in 1968, Kim, the former National Tax Service Commissioner, gained attention as the youngest person to hold that position. During his tenure, he managed a massive organization of 20,000 employees and achieved results in areas such as speculation eradication and tax administration reform. Given that the organization’s credibility has plummeted in the eyes of the public due to employees’ speculation suspicions, it is expected that he will tighten the reins to establish public service discipline.

The government has already announced plans to implement internal control measures, including prohibiting LH employees from acquiring land for purposes other than actual use. Additionally, a task force (TF) involving related ministries has been activated to devise measures in four areas: speculation prevention, detection, punishment, and recovery of illicit gains related to the LH scandal.

Regarding the government’s review of LH’s functional adjustment, Kim is expected to focus on establishing systems to prevent illegal activities such as speculation. The government is currently considering transforming LH into an institution that faithfully performs its core functions, such as housing supply. It is suggested that core functions like land supply, new town development, land development, and urban development will remain, while other functions such as residential welfare or housing construction may be separated.

However, the fact that his term is guaranteed for only one year until next year’s presidential election poses a challenge. Concerns have also been raised about whether he can stably lead the government’s key real estate policy of public-led housing supply, given his lack of expertise in the housing sector and the need for successful LH reform.

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