Lee Han-jun "Despite Sharp Real Estate Drop, Supply of 2.7 Million Houses Continues... LH Must Do Its Job"

First Press Conference Since LH President's Appointment
"Stabilizing Housing Supply Prices Is Also LH's Role"

Lee Han-jun, President of LH, is delivering a greeting at a press conference held near Gwanghwamun, Seoul, on the morning of the 23rd.

Lee Han-jun, President of Korea Land and Housing Corporation (LH), recently stated on the 23rd that despite the contraction in the real estate market, the Yoon Seok-yeol administration's plan to supply 2.7 million housing units must continue, and LH will take on the fundamental role in this effort.

On the morning of the same day, Lee held his first press briefing near Gwanghwamun in Seoul, addressing the recent real estate market situation and the goal of supplying 2.7 million housing units. He said, "This is a matter I personally contemplate deeply," and added, "Although there are many concerns from various sectors, LH's role remains unchanged."

Lee stated, "If the supply side stops because real estate prices suddenly plummet, the urban redevelopment and reconstruction market will be the first to shrink, and the construction industry will also follow a downward trend." He continued, "If LH also withdraws from supply under such circumstances, even the catalyst for the construction industry's recovery will disappear."

He said, "Since private construction companies may find it difficult to carry out supply projects due to economic downturns, I believe public enterprises should take on a certain role instead." He added, "When the economy improves at some point, it is practically impossible to suddenly supply housing in a short period." He emphasized, "LH must continue its role as a public enterprise by proceeding with and completing basic procedures such as permits, even in the current situation of a sluggish construction market."

Despite the recent rise in raw material prices and increasing construction costs, he also mentioned efforts to rationalize the sale prices as much as possible.

Lee said, "If the sharp rise in raw material prices translates into construction costs, an increase in sale prices is inevitable, which ultimately makes it harder for ordinary citizens to own homes." He added, "One of LH's core roles is to stabilize housing supply prices, and in the case of the 3rd New Towns, we will look for ways to secure additional usable area."

He also proposed another plan to reduce development costs by reducing commercial and office facility sites and instead increasing residential land.

Lee said, "There has been a tendency to reduce commercial and office facilities after COVID-19." He continued, "If we convert these areas into residential facilities, increase floor area ratio, sell parts that can be sold to the private sector, and secure more residential space, we expect not only to secure additional housing supply but also to lower development costs."

Furthermore, Lee emphasized improving the quality of housing supplied by LH, particularly prioritizing unit size and location.

He said, "There have been many inquiries regarding the quality of public housing, and since there are many opinions that the unit sizes are too small, we will first consider expanding unit sizes." He added, "Public housing residents often have limited income, so convenient access to public transportation is essential."

Regarding some setbacks in urban public redevelopment projects involving LH, he said, "I believe it is fundamentally right to proceed in the direction residents want," and added, "There is no absolute necessity for LH to carry out these projects."

He continued, "LH will never proceed with projects just to create work," emphasizing, "However, if residents want it, LH will actively take the lead and support them as they wish."

Regarding the recent demands from some prospective residents to change the name of LH's newly launched apartment brand 'Andante (ANDANTE),' he expressed regret.

He said, "If LH apartments had good quality and image, such demands would not have arisen," and added, "Rather than stubbornly insisting on pride, I believe it is right to proceed in the direction the public wants, and we will listen openly to public opinion regarding the Andante brand."

Lee also repeatedly bowed his head regarding last year's LH employee land speculation scandal and promised changes including prevention of recurrence, organizational innovation, and debt reduction.

Regarding LH's organizational reform, he said, "It is important to remove the pervasive silos within the organization." He added, "I think it is wrong for the Seoul headquarters to handle new town projects like Hanam instead of Seoul city affairs, or for the Incheon headquarters to handle Goyang Changneung new town projects."

On debt reduction, he said, "This was a matter I thought about a lot before taking office as LH president," and added, "I will first comprehensively review whether LH's assets are being utilized effectively." Regarding the sale of the Ori building in Seongnam city, he said, "We will seek reasonable measures in cooperation with Seongnam city."