Won Hee-ryong: "Ministry of Land to Also Reform Former Officials and Interest Cartels... Gradual Slope in Housing Prices"

Won Hee-ryong, Minister of Land, Infrastructure and Transport, announced plans to take strict measures not only against the Korea Land and Housing Corporation (LH) but also within the Ministry of Land, Infrastructure and Transport (MOLIT) itself.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is answering questions about current issues with the press corps at the Government Sejong Complex on the morning of the 28th. / Photo by Ministry of Land, Infrastructure and Transport

On the morning of the 28th, Minister Won met with the press corps at the Government Complex Sejong and said, "Both LH and MOLIT will undergo rigorous external and internal reforms," adding, "I will take direct responsibility and oversee even the practical details."

Following the 10-month business suspension imposed on GS Construction in connection with the collapse of the underground parking lot at the apartment construction site in Geomdan New Town, Incheon, MOLIT is currently reviewing measures to improve LH’s organizational structure. Minister Won emphasized that MOLIT itself will also be subject to reform during this process.

Minister Won explained, "There are criticisms that MOLIT only punishes LH as if it were someone else’s problem," and added, "Since public officials are involved in even larger vested interest structures, I want to make it clear that there will be no exceptions."

He continued, "Resolving issues related to former officials and cartels requires clear determination, understanding of the actual situation, and an action plan, and this process has already begun."

Regarding LH, a fundamental review of its business structure and expertise will be conducted. There are areas where LH dominates with skills far inferior to the private sector, and some projects, such as the housing benefit program, have only grown larger by absorbing non-regular workers into regular positions. Minister Won stated, "This is being examined at the government-wide level, and it will not take a long time."

On the recent rise in housing prices, mainly in the metropolitan area, he viewed it as "within a manageable range." Minister Won emphasized, "We believe this is a critical time for housing supply and demand policies," and added, "We will ensure that the public can feel the steady progress of housing supply." He also mentioned that the Housing Supply Innovation Committee will be convened on the 29th for the first time in a while, as a new assessment of the market situation is needed.

However, the policy focus will be on smoothing the slope rather than changing the direction. Minister Won said, "There is a possibility that the volume of permits and approvals may fall slightly short by the end of the year, but we will focus on fine-tuning so that the public does not hastily conclude that a sharp reduction in supply will lead to a rapid price surge."

Regarding the easing of the excess profits recovery system for reconstruction projects, which is currently stalled in the National Assembly, he urged, "I hope the opposition party will not obstruct the parts where social consensus has been reached and will help the process move forward."

Additionally, he reiterated that the Seoul?Yangpyeong Expressway project aims to proceed normally as soon as possible. Minister Won said, "When the full suspension was announced earlier, we stated that the project would resume immediately once 'political strife' was removed," and added, "MOLIT’s consistent position is to proceed normally by reflecting expert verification and the opinions of Yangpyeong residents and expressway users as a priority."