Public Enterprise CEO Carrying a 'Mangchi' in the Official Car... "If You See Something Wrong, Smash It Immediately"

In early May, Kim Se-yong, president of Gyeonggi Housing and Urban Development Corporation (GH), made an unannounced visit to the Hwaseong Dongtan A105BL Happy Housing site, one of GH's housing project districts. This was because he decided to personally oversee quality issues at GH housing project sites following the underground parking lot collapse accident in Geomdan New Town, Incheon, in April. It was a voluntary move by him, who has always emphasized 'quality management.' This was even before the Korea Land and Housing Corporation (LH) flat slab apartment scandal broke out.

Right after the underground parking lot in Geomdan New Town, Incheon collapsed last April, Kim Se-yong, president of Gyeonggi Housing and Urban Corporation (GH), carried a hammer in his company car and inspected the construction sites GH was managing. It was a voluntary action. The photo shows President Kim Se-yong inspecting the GH Dongtan A105BL Happy Housing site on May 26. (Photo by Gyeonggi Housing and Urban Corporation)

During his unannounced visit to the Hwaseong Dongtan site, as he thoroughly inspected the Happy Housing under construction, he noticed inadequate finishing above the entrance door of an underground recycling storage room in one building. Immediately, he took out a hammer he usually kept in his company car, struck the brick wall, demolished it on the spot, and ordered supplementary construction for the entrance door. This was a moment when his on-site sensibility, honed as a professor of architecture at Korea University and a full member of the National Academy of Engineering, shone through.

Afterwards, President Kim emphasized site inspections to GH executives and instructed, "Carry a hammer in your car and break anything wrong on the spot." Regarding this, he said, "I want to emphasize that GH takes direct responsibility and ownership for the quality at the sites, and furthermore, that all GH executives and employees recognize the importance of quality management and carry a sense of responsibility."

A full inspection was also conducted on four apartment complexes currently under construction. The inspection results showed no structural problems. He said, "We also conducted non-destructive testing and concrete inspections through a precision safety inspection agency for six complexes completed within the last five years, and the results are forthcoming."

"Not the Flat Slab Method but Overall Deficiencies in ‘Design→Construction→Supervision’ Fueled the LH Scandal"

When asked about the recent controversy surrounding the LH rebar omission scandal, President Kim responded that the incident occurred because the system linking design→construction→supervision did not function properly. He added that the flat slab structure, which has become synonymous with poor construction, is not inherently problematic. The flat slab method supports loads without load-bearing walls or horizontal beams, allowing for higher floor heights to create a sense of openness. If built properly, it can save time and costs.

He said, "There is no problem with the flat slab structure itself. However, during execution, poor construction due to a lack of skilled workers and the absence of supervision caused by organizational collusion combined to cause the stability issues of the flat slab structure."

Currently serving as president of the Korea Urban Design Association, President Kim lamented, "Skilled workers should calculate whether the rebar is properly installed, but there is a shortage of skilled rebar workers. Ten years ago, Korean or ethnic Korean foremen led the sites, but now foreign workers who cannot even properly read blueprints fill the construction sites." He expressed concern that the few remaining skilled workers are mostly in their 60s, nearing retirement.

"GH’s Role Must Now Change… From Supplier to Town Manager"

GH plans to unveil a new business model for the first time in early September. This will be through the ‘Opportunity’ brand, introduced as a new vision by President Kim, who took office last December, in February this year. This business model encompasses housing projects, offices, and more, with the intention that GH will establish itself as an opportunity partner to help the homeless or those preparing to start a business take a step forward. President Kim emphasized, "This aligns with the concept of opportunity mentioned by the Gyeonggi provincial government. We want to become a partner that discovers areas where value is created in our society but adequate compensation is not received, and provides opportunities."

Kim Se-yong, President of GH Gyeonggi Housing and Urban Corporation, is walking on the elevated pedestrian walkway near the Pangyo Project Team. Photo by Heo Young-han younghan@

In particular, the Gyeonggi Province-style housing model to be unveiled in September will be divided into three types: rental, ownership, and others. GH plans to first reveal these three housing models, observe consumer responses, and then expand the number of models in the future. President Kim said, "We aim to start construction within three years. Considering that the scale of supply may change if local government heads change, we believe tens of thousands of units are possible at the groundbreaking ceremony."

He also stated that GH will not engage in public sale in the traditional way, as sales are primarily a private sector domain. He cited witnessing other public enterprises expanding or conducting public sales and then facing backlash due to excessive competition with the private sector. He explained that public enterprises entering sales do not align with market principles and do not have the effect of lowering housing prices.

One of his goals during his term is to improve GH’s organizational structure. He emphasized that GH must evolve from a traditional supplier role to a town manager. This means not just building buildings and developing areas and then stepping away, but carefully managing post-occupancy maintenance as well.

President Kim said, "GH is an organization with a strong character of the former Korea Land Corporation, focusing on land development and industrial complex development rather than housing supply. Considering that demand for land development will almost disappear in the future, I repeatedly emphasize that our role is to operate and manage cities as a town manager, not as a builder."

In short, the order is to ‘transform.’ To ensure this is not just rhetoric, he also proposed concrete methods through the establishment of subsidiaries.

President Kim stated, "We plan to establish a separate subsidiary dedicated solely to maintenance and repair, meaning to continuously maintain and repair a city once built until it is reconstructed. We plan to create maintenance management corporations in Gwanggyo and Pangyo."

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