[2020 National Audit] Similar Location and Size... LH Rental Apartments Much More Expensive Than SH

LH, Monthly Rent 1.4 to 5 Times Higher, Deposit 2 to 10 Times Higher
Verbal Abuse and Assault by Rental Apartment Management Office Staff
Over 3,000 Cases in 5 Years... 25 Cases of Weapon Threats

Byun Chang-heum, President of Korea Land and Housing Corporation (LH), appeared at the National Assembly's Land, Infrastructure and Transport Committee on the 8th for the audit of Korea Land and Housing Corporation and responded to lawmakers' questions. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Moon Jiwon] It has been revealed that the deposit and monthly rent of rental apartments operated by Korea Land and Housing Corporation (LH Corporation) are significantly higher than those of rental apartments managed by Seoul Housing and Communities Corporation (SH Corporation).

According to a comprehensive survey of public rental housing in Seoul received by Jin Seongjun, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, from LH and SH on the 8th, despite similar locations and sizes, LH apartments had monthly rents 1.4 to 5.5 times higher and deposits 2 to 10.5 times higher than SH apartments.

For example, a 29㎡ (exclusive area) permanent rental apartment in Gangnam-gu, LH Gangnam 3 and SH Suseo 6, are only 2 km apart, but LH’s monthly rent was 145,850 KRW, while SH’s was 45,300 KRW, a 3.2-fold difference. The deposit was 19.32 million KRW for LH and 1.84 million KRW for SH, making LH 10.5 times more expensive.

Also, the 29㎡ LH Songpa urban-type residential housing in Songpa-gu has a deposit of 59.62 million KRW, whereas the SH Geoyeo 6 39㎡, which is 4 km away and larger in size, only costs 10.94 million KRW, showing a difference of more than five times.

Similar situations were found in other areas such as permanent rentals in Gangseo-gu (LH Deungchon 4 and SH Gayang 4), permanent rentals in Nowon-gu (LH Wolgye 1 and SH Wolgye Saseum 1), and permanent rentals in Seocho-gu (LH Seocho 3 and SH Seocho Foresta 6).

The reason why LH’s monthly rent and deposit are higher than SH’s is because LH has continuously raised prices over time. While SH has mostly frozen rents annually except for a 5% increase in 2011 since 2004, LH has increased rents annually by 3.9 to 5.0% since 2010.

Assemblyman Jin emphasized, "LH should actively consider freezing or lowering monthly rents," and added, "It is also necessary to actively consider a plan to calculate monthly rents differentially based on residents’ income and asset criteria."

Serious 'Verbal Abuse and Assault' of LH Rental Apartment Management Office Staff

Additionally, it was found that over 3,000 cases of verbal abuse or assault against management office staff in LH rental apartments occurred over five years.

According to data submitted by the Housing Management Corporation reviewed by Assemblyman Heo Young of the Democratic Party, from 2015 to last year, there were 3,065 cases of LH rental apartment management office staff being verbally abused or assaulted by residents. This year, there have been 86 cases reported up to August.

During this period, the types of incidents included 1,471 cases of verbal abuse, 1,384 cases of verbal abuse under intoxication, 130 cases of threats, 72 cases of assault under intoxication, and 69 cases of assault. There were even 25 cases involving weapon threats.

Although the Housing Management Corporation established a cooperation plan with a mental health center in 2018 to promote the mental health of management staff, it is known to be insufficient and ineffective for nationwide rental apartment workers to use.

Assemblyman Heo stated, "To improve the quality of life for residents, the safety of management office staff must be guaranteed first," and added, "For the happiness of both residents and staff, LH must create more meticulous plans and manage accordingly."