After Land Speculation Scandal, 19 LH Executives Resign in Droves...Collecting 1.2 Billion KRW in Severance Pay

Assemblywoman Kim Eun-hye: "Senior executives are only focused on saving themselves"

[Asia Economy Reporter Kim Hye-min] Following the land speculation controversy surrounding the 3rd phase new towns, a rush of resignations among executive-level employees at Korea Land and Housing Corporation (LH) has intensified.

According to data submitted by LH to Kim Eun-hye, a member of the National Assembly's Land, Infrastructure and Transport Committee from the People Power Party, a total of 19 executive-level employees resigned or took honorary retirement from March, when the People's Solidarity for Participatory Democracy raised land speculation allegations, until June, when the government announced LH reform measures.

Specifically, there was 1 standing director, 1 non-standing director, and 17 senior officials at levels 1 and 2. This accounts for about 30% of the total 64 LH retirees during that period.

It was confirmed that levels 1 and 2 employees received a total of 1,241.92 billion KRW in severance and honorary retirement pay. The standing director received 27.37 million KRW, while the non-standing director was not eligible for severance pay. For levels 1 and 2, the average amount received per person was approximately 71.44 million KRW.

The reform plan announced by the government on June 7 included measures to curb chronic malpractices such as preferential treatment for retirees and abusive behavior, by restricting employment for executives. The restriction, previously applied only to seven executives including standing and non-standing directors, was expanded to include senior officials at levels 1 and 2, increasing the number of affected individuals to 529.

However, the 17 level 1 and 2 executives who resigned before the reform announcement are not subject to the employment restriction regulations. Assembly member Kim Eun-hye pointed out, "While the government was dithering for months over revising LH's reform system, senior executives were still busy securing their own interests. They are now excluded from employment restrictions and may even foster the practice of preferential treatment for retirees."

She added, "We will continue to monitor the prompt implementation of the revised Enforcement Decree of the Public Officials Ethics Act, which strengthens employment screening."

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