'Terminal Minister' for Nearly a Month
LH Innovation Plan Also Delayed Repeatedly
Ultimately Election Defeat... Renewal Inevitable
Minister of Land, Infrastructure and Transport Byeon Chang-heum is attending the Cabinet meeting chaired by Prime Minister Chung Sye-kyun at the Government Complex Sejong in Sejong City on the morning of the 6th. [Image source=Yonhap News]
Concerns are growing that the government's real estate policy may lose momentum following the ruling party's complete defeat in the Seoul mayoral by-election. Since the election results were significantly influenced by the angry public sentiment on real estate, there are calls for reform centered around the Ministry of Land, Infrastructure and Transport. Inside and outside the government, discussions include replacing Minister Byeon Chang-heum and early restructuring of Korea Land and Housing Corporation (LH).
According to government and political sources on the 9th, President Moon Jae-in is reportedly considering a cabinet reshuffle as a measure to soothe public sentiment after the Seoul mayoral election defeat. In the real estate sector, replacing Minister Byeon, who already tendered his resignation last month amid allegations of LH employees' land speculation in the 3rd new town development, is highly likely.
When Minister Byeon submitted his resignation, President Moon accepted it in effect, stating, "I believe he must show responsibility," but added a caveat that "the groundwork for legislation related to public-led housing supply measures must be completed." Since then, Minister Byeon has remained a 'minister with a deadline' for nearly a month without clear resolution, leading to criticism that the government's housing supply policies, including the 2·4 measures, have lost momentum.
In particular, the LH president position has been vacant for over three months, and appointments for heads of affiliated organizations such as the Housing and Urban Guarantee Corporation (HUG) have been delayed, raising concerns about leadership absence and resulting work gaps. Industry experts analyze that after the appointment of a new Minister of Land, Infrastructure and Transport, restructuring of LH and its affiliates should proceed to properly address the public officials' land speculation scandal and to ensure the follow-up housing supply measures are implemented smoothly.
Some reports suggested that the Blue House considered retaining Minister Byeon until just before the April 7 by-election, anticipating a close race, but the Blue House denied this on the day, stating, "This is completely untrue."
The government is also expected to accelerate the LH restructuring process. On the 29th of last month, the government announced measures to eradicate real estate speculation and prevent recurrence, stating that the LH innovation plan would be announced later. However, as the restructuring plan has been repeatedly delayed, concerns are growing over the uncertainty surrounding various public development projects currently being pursued by LH. Given that LH is a massive organization with about 10,000 employees, separating functions and adjusting roles is known to be challenging.
An industry official explained, "LH is participating as the project executor for the 3rd new town development, which is approaching pre-sale, and plays a crucial role in the core housing supply plans of the 2·4 measures, so restructuring must be carried out as soon as possible." Yoon Sung-won, Deputy Minister of Land, Infrastructure and Transport, recently appeared on a radio program and said, "Since LH has about 10,000 employees, there are many monopolized tasks and management seems to have been inadequate," adding, "We will prepare various measures within the scope that does not affect the 2·4 measures."
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