Kwon Hyung-taek, HUG President, Announces Resignation... Third Head of Ministry of Land, Infrastructure and Transport-Affiliated Agency

Kwon Hyung-taek, President of the Housing and Urban Guarantee Corporation (HUG). [Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] Kwon Hyung-taek, CEO of HUG (Housing and Urban Guarantee Corporation), who is currently under audit by the Ministry of Land, Infrastructure and Transport, has tendered his resignation with 1 year and 6 months remaining in his term.

According to HUG and the Ministry of Land, Infrastructure and Transport on the 5th, CEO Kwon conveyed his intention to resign to Minister Won Hee-ryong on the 4th. CEO Kwon took office in April 2021, and his term was until April 2024.

CEO Kwon’s sudden resignation is interpreted to be closely related to the recent thorough audit of HUG initiated by the Ministry. The Ministry recently announced the results of a regular audit revealing that HUG unjustifiably raised the credit rating of a specific construction company by four levels from BB+ to A+ last year, causing a guarantee fee loss of 1.32 billion KRW.

Accordingly, the Ministry judged that the CEO’s responsibility could not be excluded in addition to the responsible executives of the corporation, and planned to continue the audit. Through the audit, they intended to examine whether there were any improper work instructions or personnel abuses, and if illegal acts were found, to hold those responsible accountable through measures such as filing complaints or requesting investigations.

The resignation of heads of Ministry-affiliated organizations is the third case following Kim Hyun-joon, CEO of LH (Korea Land and Housing Corporation) in August, and Kim Jin-sook, CEO of Korea Expressway Corporation last month.

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