LH "Allegations of Favoritism to Former Officials and Steel Rebar Omission: Referral for Investigation... Considering One-Strike Expulsion"

Announcement of Innovation Plan Including Establishment of 'Bankartel Fair Construction Promotion Headquarters'
Reinforcement Work for 15 Poorly Constructed Complexes... Final Completion by End of September

Korea Land and Housing Corporation (LH) has established the Anti-Cartel Fair Construction Promotion Headquarters to eradicate construction cartels and decided to request investigations into companies suspected of preferential treatment through former officials. It also announced that it will consider applying a 'one-strike-out' policy to design and supervision firms that caused poor construction quality.

Lee Han-jun, President of Korea Land and Housing Corporation (LH), is offering an apology regarding the recent situation at the "Emergency Countermeasure Meeting for LH Responsible Officials to Eradicate Construction Cartels and Poor Construction" held on the afternoon of the 2nd at the LH Seoul Regional Headquarters in Gangnam-gu, Seoul. / Photo by Yonhap News

On the 2nd, LH President Lee Han-jun held an 'Emergency Countermeasure Meeting for LH Responsible Parties to Eradicate Construction Cartels and Poor Construction' at the LH Seoul Regional Headquarters in Nonhyeon-dong, Gangnam-gu, Seoul, where he announced these measures.

President Lee said, "I sincerely apologize for the unfortunate incidents that occurred in LH apartments, which should be the safest homes for the public," adding, "If we fail to properly establish construction safety this time and cannot dispel suspicions of preferential treatment throughout the entire LH construction process, including design and supervision, we will prepare high-intensity measures with the determination that 'LH has no future'."

To eradicate construction interest cartels and poor construction, LH will establish the 'Anti-Cartel Fair Construction Promotion Headquarters' within the Southern Gyeonggi Regional Headquarters. It will operate until the cartel is dismantled, with the head of the Construction Safety Technology Headquarters serving as the director. The headquarters will play a role in eradicating preferential treatment of former officials, interest involvement, collusion, and fraudulent or corrupt acts that may occur throughout the entire construction process from design to supervision. It will also be responsible for preparing construction innovation plans.

As part of its construction site management plan, LH will also consider a 'one-strike-out' policy to expel companies that cause poor construction related to construction cartels. Direct sanctions such as restrictions on bidding participation due to serious accidents and construction disasters will be imposed at the expulsion level.

Internally, LH plans to reorganize the department dedicated to supervision services and mandate on-site supervision teams to improve the currently ineffective supervision system. Detailed safety inspections of buildings at each construction stage will also be conducted mandatorily.

LH will also block channels through which former officials can intervene by reorganizing its operations. On the 4th, it will request investigations by the National Police Agency into companies and individuals suspected of preferential treatment by former officials, as well as those related to the design, construction, and supervision of 15 apartment complexes with previously announced missing reinforcement in flat slab structures.

If there is suspicion of collusion among former official companies, LH will immediately request an investigation by the Fair Trade Commission. LH operates a bidding collusion detection system and provides bidding status information to the Fair Trade Commission monthly.

Furthermore, regarding the flat slab structures of the 15 complexes where poor construction issues were raised, LH will proceed with reinforcement construction reflecting residents' demands.

President Lee stated, "Reinforcement has been completed in three districts, and eight districts are expected to be completed by the end of this month," adding, "For the four districts where residents have already moved in, reinforcement construction will be completed by the end of next month."

He continued, "Above all, we will proceed in a way that suits the characteristics of each complex to ensure safety and no issues with the move-in schedule," and added, "Under LH supervision, detailed safety inspections will be conducted by inspection companies chosen by residents, and reinforcement will be done using seven verified construction methods."

President Lee emphasized, "I would like to reiterate that the flat slab structure in LH apartments was applied only in parking lots, not in residential buildings," and stressed, "We will stake LH's fate on establishing high-intensity and fundamental measures to break up construction interest cartels and eradicate poor construction."

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