LH Terminates Existing Contracts with Former Firms... Worth 64.8 Billion KRW
Emergency Meeting Chaired by Minister Won Hee-ryong
Promotion of Internal Regulation Revision Related to Exclusion of Former Officials' Companies from Bidding
Regarding the 'rebar omission' incident, Korea Land and Housing Corporation (LH) announced that it will completely halt the process of signing service contracts such as design and supervision, and furthermore, it will terminate service contracts with former official firms that have already been signed.
![[Image source=Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2023082015433945292_1692513819.jpg)
On the 20th, LH made this announcement at the Seoul Regional Headquarters during an 'Emergency Meeting on LH Service Former Official Cartel' chaired by Won Hee-ryong, Minister of Land, Infrastructure and Transport.
The contracts targeted are those signed with former official firms after the announcement of the rebar omission in LH apartment complexes on the 31st of last month. The confirmed scale amounts to a total of 11 cases worth 64.8 billion KRW, including 10 design competitions (56.1 billion KRW) and 1 supervision service (8.7 billion KRW).
LH stated that contracts with firms confirmed to have no former officials will be maintained as is, but contracts with former official firms will be terminated once confirmed.
For services where bids were announced after July 31 but the evaluation and selection have not yet been completed, LH plans to cancel all such announcements.
Among the design and supervision services for which bidding announcements and evaluation procedures have been conducted after July 31, there are 11 design cases and 12 supervision cases currently in progress, totaling 89.2 billion KRW.
![[Image source=Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2023082015085245286_1692511732.jpg)
LH announced that it will promptly revise internal regulations related to contracts and evaluations to exclude former official firms from bidding, ensuring that the cancellation of evaluation and selection for service contracts and the promotion of future service orders proceed without disruption.
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They will immediately implement measures to award additional points during the evaluation process to firms that do not employ LH retirees and make the submission of retiree lists mandatory.
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