"They Need to Arrive as Soon as Possible"... Seven MOLIT-Affiliated Agencies Including LH Left Adrift Without Leaders

Four Resignations Within the New Administration...
Seven Agencies Effectively Leaderless, Including Those With Expired Terms
Delays in Appointment Process...
Real Estate Board Stalled at Minister Recommendation Stage
Many Appointees From Previ

With key leadership positions at major public institutions under the Ministry of Land, Infrastructure and Transport (MOLIT) now vacant, attention is turning to the appointment of successors. These institutions play a critical role in balanced national development and residential stability, both of which are closely tied to the daily lives of citizens. As a result, it is expected that the new administration will push forward with strong policy initiatives early in its term. With the appointment of Yoonduk Kim as Minister of Land, Infrastructure and Transport, there is anticipation both inside and outside government circles that the selection process for new leaders will accelerate as leadership is reorganized.

Four Resignations Since the New Administration Took Office... Seven Institutions 'Effectively Vacant' Including Those with Expired Terms

According to the government and Korea Land and Housing Corporation (LH) on August 12, Hanjoon Lee, President of LH, submitted his resignation on August 5. Previously, Lee had stated last month that he would leave the decision regarding his position to the appointing authority once a new minister was appointed. He made his decision just five days after the ministerial change. Although his original term was set to end in November, he has now entered the resignation acceptance process.

Since the new administration took office, four institutions under MOLIT have seen their heads offer to resign: LH, the Housing and Urban Guarantee Corporation (HUG), SR, and the Jeju Free International City Development Center (JDC). Of these, resignation acceptance has already been completed for two institutions, excluding LH. Regarding the acceptance of Hanjoon Lee's resignation, a MOLIT official stated, "It is difficult to confirm the acceptance of individual resignations, as it involves each institution's circumstances and personal information."

The resignation acceptance process involves verifying eligibility, recommending dismissal to the president, and obtaining approval. This typically takes several days to as much as two to three weeks. As a result of these recent resignations, seven out of 29 institutions under MOLIT are now either without a leader or awaiting resignation acceptance.

The first institution head to offer resignation under the new administration was Jongguk Lee, President of SR. After his term ended in December last year, he continued in the role due to delays in appointing a successor, but after receiving a "D" (Unsatisfactory) rating in the management evaluation, he resigned in June. Byungtae Yoo, President of HUG, and Youngcheol Yang, President of JDC, also received the same rating and stepped down.

Hyungjung Yoon, former President of Korea Airports Corporation, resigned in April last year with one year left in his term. At Korea Real Estate Board and Korea Infrastructure Safety and Technology Corporation, the previous heads are still in office due to the absence of successors after their terms ended. While they are technically still in their positions, these posts are effectively vacant.

Delays in Appointment Process... Real Estate Board Stalled at Minister Recommendation Stage

Yoonduk Kim, Minister of Land, Infrastructure and Transport. Photo by Yonhap News

Korea Airports Corporation, Korea Real Estate Board, SR, and JDC have already begun the open recruitment process for new leaders. However, the appointment process is taking longer than usual. In the past, it typically took one and a half to three months from the announcement to the inauguration, but all of these institutions have now exceeded that timeframe.

Korea Real Estate Board selected its final candidates after an open recruitment process in July last year, but the process has stalled at the stage where the MOLIT minister must recommend a candidate. HUG, which has been without a leader for two months, has not yet officially begun the process. A HUG official stated, "With the new minister in office, we expect the appointment process to speed up." A senior MOLIT official commented, "Previous HUG presidents often came from the financial sector and lacked deep understanding of the housing and construction fields. This time, we hope someone with strong industry expertise will be appointed."

Korea Airports Corporation submitted multiple candidates to the government through its executive recommendation committee in August last year, following an open recruitment process in June, but the process stalled at the next stage. At Korea Infrastructure Safety and Technology Corporation, the term of President Ilhwan Kim ended in February this year, but no recruitment notice has been issued yet. A representative from the corporation explained, "The end of the term coincided with a government transition period, and with political events such as the impeachment crisis and the June presidential election, it was difficult to proceed with the appointment process immediately. Now that new leadership is in place with the appointment of a new MOLIT minister, we plan to coordinate with the ministry and move forward with the next steps."

In cases where an acting system is in place or previous leaders continue after their terms have ended, major decisions such as approvals, personnel changes, and business strategies are typically put on hold until a successor is appointed. With the prevailing sentiment that "everything changes when a new leader arrives," most institutions are only carrying out minimal operations.

An official from one of the institutions under MOLIT stated, "When there is no head of the institution, strategic decisions such as new investments or organizational and personnel restructuring inevitably get postponed. The approval chain is broken, so we have to manage finances and business plans conservatively, and progress on joint projects with the government also slows down."

Another official commented, "Project schedules are being delayed one after another, which is increasing internal fatigue. We hope the new head will arrive as soon as possible so that operations can return to normal."

Many Appointees from the Previous Administration... Attention on Their Future Amid Guaranteed Terms

The president appoints the heads of 11 institutions under MOLIT. Of these, five currently have vacant leadership positions. Since these institutions are responsible for core areas such as national infrastructure and housing supply, changes in leadership can have far-reaching impacts.

The appointment process involves forming a candidate recommendation committee, soliciting candidates, recommendations by the committee, deliberation by the Ministry of Economy and Finance's Public Institutions Management Committee, a recommendation by the MOLIT minister, and finally, appointment by the president. Successive administrations have selected individuals who align with their policy direction. The Lee Jaemyung administration has prioritized residential stability for ordinary citizens, expansion of transportation infrastructure, and the construction of future-oriented cities as its core tasks. There is a high likelihood that personnel reforms will be accelerated to redefine the roles of public institutions and achieve tangible results.

At six institutions?including Incheon International Airport Corporation, Korea Expressway Corporation, KORAIL, National Railway Authority, Korea Transportation Safety Authority, and Korea Land and Geospatial Informatix Corporation?the heads were appointed during the Yoon Sukyeol administration and have more than one year left in their terms. Although their terms are legally protected, there is always the possibility of changes in their positions during transitions of power, as resignations?whether voluntary or involuntary?have been a recurring pattern.

Potential candidates for the next LH president include Seyong Kim, a professor at Korea University, and Heonwook Lee, former president of Gyeonggi Housing and Urban Development Corporation (GH). Professor Kim previously served as president of Seoul Housing and Communities Corporation (SH) and GH. He is currently a member of the National Policy Planning Committee, participating in the new administration's blueprint for housing supply. This aligns with President Lee Jaemyung's emphasis on expanding housing rights and public rental housing. Yoonduk Kim, Minister of Land, Infrastructure and Transport, has stated that a fundamental overhaul of LH is necessary. He said, "A large-scale structural reform that can change the entire landscape is needed," adding, "President Lee Jaemyung has asked me to proactively and aggressively pursue LH reforms."

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