LH to Conduct Special Early Retirement This Month for "Workforce Structure Improvement"

High-Intensity Innovation Drive "5-Year Recovery from Misconduct Retired Executives"
Personnel Innovation Plan Including Strengthened Sanctions on Speculators
Abolishing Special Privileges for Former Officials by Improving Notary and Appraiser Selection Systems
Strengthening Sanctions on Poor Construction Companies to Establish a Fair Construction Culture
Organizational Function Adjustment Within the Year to Strengthen Housing Welfare and Expand Housing Supply

On the 5th, Kim Hyun-joon, President of LH (right), and Kim Jun-gi, Chairman of the Innovation Committee, are speaking at the 7th LH Innovation Committee held at the LH Seoul Regional Headquarters. / Photo by LH

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH), which has confirmed a phased reduction of 1,064 personnel by 2025, will conduct a special voluntary retirement this month.

In addition, the period for reclaiming performance bonuses from employees who retired due to misconduct will be extended to a maximum of five years, and if an employee is suspended from duty due to speculation allegations, their monthly salary will be reduced by half. To prevent preferential treatment of former LH legal officers and appraisers, restrictions on accepting work will be imposed for one year after retirement.

On the 7th, LH announced that it held the 7th ‘LH Innovation Committee’ at the Seoul Regional Headquarters on the 5th and prepared measures to enhance fairness and transparency based on these points.

Special Voluntary Retirement This Month... Reduction of Headquarters Organization by Year-End Including Abolishment and Transfer of 24 Functions

According to the government’s LH innovation plan, LH plans to adjust functions by the end of the year, including abolishing, transferring, or reducing 24 functions that have insufficient relevance to LH’s establishment purpose, overlap with other agencies, or can be performed by the private sector.

Earlier, the government finalized the first phase of organizational slimming on the 27th of last month, which includes a phased reduction of 1,064 LH personnel by 2025. As part of its efforts for personnel reform and improvement of workforce structure, LH plans to implement a special voluntary retirement this month.

Performance Bonus Reclamation Period for Speculation and Misconduct Retirees Extended from 3 to 5 Years, Monthly Salary Reduction Increased from 20% to 50%

LH has strengthened sanctions against employees involved in misconduct by expanding the standard for reclaiming performance bonuses from ‘3 years’ after retirement to a maximum of ‘5 years’ if an executive is convicted of violating integrity obligations.

Also, if an employee is suspended from duty due to real estate speculation allegations, the previous limit of reducing up to 20% of the basic monthly salary has been increased to a maximum of 50%.

In cases where disciplinary action is required for violating real estate acquisition restrictions, not only will promotions be restricted, but if violations are discovered after promotion, the promotion can also be canceled.

Abolishing Special Privileges for Former LH Legal Officers and Appraisers by Restricting Work Acceptance for One Year After Retirement

To eradicate suspicions of preferential treatment toward former LH legal officers and appraisers, LH has imposed a restriction on accepting work for one year after retirement.

To prevent concentration on specific individuals in selecting legal officers, LH will implement institutional improvements such as expanding the number of contracted legal officers selected, establishing a fairness indicator for work acceptance, increasing the weight of quantitative evaluation, and expanding participation of external reviewers. For appraiser selection, LH plans to improve the fairness indicator to provide equal opportunities and introduce disqualification, avoidance, and recusal measures for retired appraisers in accordance with future related legal amendments.

LH will also introduce a retired employee contact reporting system to fundamentally prohibit inappropriate contact with retired employees.

Additionally, LH plans to improve detailed evaluation criteria during the comprehensive evaluation of construction project management services by raising the deduction standards based on penalty points and establishing deduction standards for issuing quality deficiency notices to prevent contracts with poor construction companies.

Furthermore, LH will restrict participation in bids during litigation that aims to nullify penalty points.

Kim Hyun-jun, LH President, stated, “We will faithfully implement the government’s LH innovation plan and our own innovation efforts.”

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