Nominee Noh Hyung-wook Appointed as New Minister of Land, Infrastructure and Transport
Byun Chang-heum Resigns After 109 Days in Office
Resignation Ceremony Held on Cabinet Reshuffle Day, Leaves Ministry
Housing Supply Expert... Designed 2·4 Plan
High Expectations for Housing Price Stability but Early Dismissal
Minister of Land, Infrastructure and Transport Byeon Chang-heum is attending the '17th Real Estate Market Inspection Meeting of Related Ministers' held at the Government Seoul Office in Jongno-gu, Seoul on the 17th. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Moon Jiwon] Byeon Chang-heum, Minister of Land, Infrastructure and Transport, will step down on the 16th. He took office at the end of December last year and announced the February 4th measures just over a month later, striving to stabilize housing prices, but the land speculation scandal involving employees of Korea Land and Housing Corporation (LH) hindered his efforts. Byeon, a scholar and housing supply expert who served as LH president before rising to head the Ministry of Land, Infrastructure and Transport, will be recorded as the third shortest-serving minister in the ministry's history.
On the same day, the Blue House announced a cabinet reshuffle and nominated former Prime Minister's Office Chief Noh Hyung-wook as the next Minister of Land, Infrastructure and Transport. Minister Byeon will hold a farewell ceremony at 5 p.m. on the day of the reshuffle announcement and leave the ministry. Typically, a sitting minister retires when the successor completes the confirmation hearing and officially takes office, but Minister Byeon scheduled his retirement on the day of the reshuffle. From the 17th, the ministry will be operated under an acting vice minister system.
Minister Byeon took office on December 29 last year. He is stepping down after 109 days in office, making him the third shortest-serving minister in the ministry's history. Earlier, on the 12th of last month, as suspicions of land speculation by LH employees spread, he expressed his intention to resign, taking responsibility for failing to properly manage the organization as the former LH president. At that time, President Moon Jae-in effectively accepted his resignation but retained him temporarily, stating, "Minister Byeon must complete the groundwork for legislation related to the public-led housing supply measures he promoted."
Minister Byeon was regarded as a housing supply expert and a suitable candidate for stabilizing housing prices. He served as a senior researcher at Seoul Urban Development Corporation, associate research fellow at Seoul Institute, professor at Sejong University, and director of the Korea Urban Research Institute, a non-profit private research organization. He gained administrative experience as president of Seoul Housing and Communities Corporation (SH) and laid the foundation for the Moon Jae-in administration's pledge project, the 'Urban Regeneration New Deal,' alongside former Blue House Policy Chief Kim Soo-hyun.
He later took office as LH president and implemented the government's housing supply policies on the ground. President Moon also showed high expectations by urging other economic ministries to "cooperate with Minister Byeon's supply measures" after his appointment. Minister Byeon expressed confidence during an online briefing with Ministry of Land reporters on December 18 last year, saying, "I believe we can continuously and sufficiently supply high-quality, affordable housing even within urban areas."
In fact, Minister Byeon announced the February 4th measures about a month after taking office, which included supplying approximately 830,000 households nationwide. The plan reflected a strong intention to curb housing prices by significantly increasing housing supply led by public institutions such as LH. Expectations grew that new homes could be supplied in downtown Seoul through the February 4th measures, leading to the appearance of some urgent sale listings and a reduction in the rate of housing price increases. Recently, rental prices have also gradually stabilized, especially in Seoul.
Minister of Land, Infrastructure and Transport Byeon Chang-heum is attending the '16th Real Estate Market Inspection Meeting of Related Ministers' held at the Government Seoul Office in Jongno-gu, Seoul on the 12th. Photo by Jin-hyeong Kang aymsdream@
However, the land speculation scandal involving LH employees became a stumbling block for Minister Byeon. On the 2nd of last month, the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society revealed allegations that LH employees engaged in land speculation worth billions of won in the Gwangmyeong-Siheung district, designated as the 3rd new town, causing public opinion to deteriorate sharply and raising questions about Minister Byeon's responsibility as the former LH president just before joining the ministry.
On the 9th of last month, during an emergency briefing at the National Assembly Land, Infrastructure and Transport Committee, Minister Byeon admitted responsibility, saying, "I feel empty that this happened due to my lack of supervision," and "Since I am now in a position to manage such institutions at the ministry, I believe I bear double responsibility." Subsequently, when Prime Minister Chung Sye-kyun announced the results of a government joint full-scale investigation and stated, "Minister Byeon cannot be free from responsibility," Minister Byeon ultimately expressed his intention to resign.
As Minister Byeon, who designed the February 4th measures, leaves the ministry, concerns have been raised that follow-up housing supply measures may lose momentum. LH, which must implement the supply measures, has yet to resolve internal turmoil. In particular, with Seoul Mayor Oh Se-hoon taking office, expectations for deregulation of private development have spread, raising concerns that negative perceptions of public development may deepen.
Noh Hyung-wook, nominated as the new Minister of Land, Infrastructure and Transport, is from the Ministry of Economy and Finance. Although not unrelated to the ministry's work, some view his nomination as surprising since he is a non-expert in real estate compared to Minister Byeon. However, Noh is known for his good interpersonal skills and excellent administrative capabilities, raising expectations that he will effectively manage the confusion within the ministry and LH and responsibly lead the follow-up measures of the February 4th plan.
On the day, Noh said, "I will prioritize the people's housing stability and the eradication of real estate speculation and do my best efforts," adding, "I will also carefully monitor other issues that might be neglected due to the focus on real estate problems."
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