[Reporter’s Notebook] LH Deceives the Public with ‘Trick’ of Offering Resignations from Outgoing Executives

"As the first step to reform the organization, we have temporarily received the resignations of all standing directors. Along with the resignation letters of all executives and employees, I will also follow the government's will regarding my position."

Lee Han-jun, president of Korea Land and Housing Corporation (LH), who is at the center of controversy over the omission of rebar in Mu-ryang-pan apartment construction, held an emergency press conference on the 11th and bowed his head, promising a sweeping organizational reform. Afterwards, President Lee decided to accept the resignations of 4 out of 5 executives as a measure taken that day. However, criticism poured in again, calling it a mere show. In fact, it was revealed that the terms of the 4 executives whose resignations were accepted had already ended or were nearly over. Among these 4, 2 had already completed their terms, and the remaining 2 had only about a month left until their terms expired next month. This is why suspicions have been raised that LH resorted to a superficial ‘trick’ to avoid criticism.

This suspicion of LH’s ‘trick executive incident’ is not the first. When allegations of real estate speculation by LH employees arose in 2021, LH promised reform and dismissed 4 standing directors, but 2 of them had only 9 days left in their terms at that time, drawing criticism. Moreover, all 4 dismissed standing directors were appointed as professors at LH’s in-house university with nearly 100 million KRW annual salaries and guaranteed 2-year terms.

The problems do not end there. LH showed an inability to even properly grasp the basic status of the defective slab structure construction. LH announced on the 30th of last month that it conducted a full investigation of 91 LH apartments where the Mu-ryang-pan structure was applied and found rebar missing in 15 locations. However, as explanations changed repeatedly, the number of LH apartments with Mu-ryang-pan structures ultimately increased to 102, and the number of apartments with defective construction rose to 20. Misconduct among employees continues unabated. From 2018 to August 1 of this year, there have been 299 internal disciplinary cases involving LH executives and employees.

When Korea Land Corporation and Korea Housing Corporation merged in 2009 to form the current LH, the public had high expectations for LH as a public enterprise that would develop new towns, build public housing, and provide residential welfare. However, now, even if LH proposes some reform plans, it seems unlikely that many citizens will trust them. It is now truly time for genuine transformation, not just a show. If LH cannot innovate on its own, a sweeping reform and renewal plan for LH must be prepared by borrowing external forces such as the prosecution, Board of Audit and Inspection, and Ministry of Land, Infrastructure and Transport.

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