The Ministry of Land, Infrastructure and Transport is set to announce an innovation plan soon to tackle the issue of the Korean Land and Housing Corporation (LH)'s interest cartel. It is known that measures such as opening some of the public housing projects led by LH to private companies are being considered.
Won Hee-ryong, Minister of Land, Infrastructure and Transport, is speaking at a resident meeting held on the afternoon of the 10th at Yeongung Youth Housing in Sinjeong-dong, Yangcheon-gu, Seoul. / Photo by Yonhap News
On the 10th, Minister of Land, Infrastructure and Transport Won Hee-ryong said at the 'Hero Youth Housing Move-in Meeting' in Sinjeong-dong, Yangcheon-gu, Seoul, regarding the LH innovation plan, "We are going through internal procedures so that the person responsible for the practical work can explain (the innovation plan) as soon as possible, as inaccurate speculation could increase confusion," and added, "Please wait a little longer." He also mentioned that the level of the innovation plan would be 'high-intensity.'
Earlier, after a collapse accident occurred at the underground parking lot construction site of a public sale apartment in Geomdan New Town, Incheon, in April, the government has been preparing an innovation plan to resolve issues such as LH's interest cartel being pointed out as a problem.
The innovation plan is expected to include measures to expand opportunities for private companies to participate in public housing projects. This is based on the judgment that the current structure, where LH virtually monopolizes public housing projects, has led to 'poor quality.' The authority to select design and construction companies for public housing construction, which LH previously held, will be transferred to the Public Procurement Service. The authority to select and manage supervision companies will be held by the Korea Infrastructure Safety & Technology Corporation.
It is also reported that measures are being pursued to allow punitive damages (up to five times) if the cause of poor construction accidents such as missing rebar is related to preferential treatment of former officials. Furthermore, the scope of reemployment screening for LH retirees will be expanded from the current level of about 30% of retirees to 50%, and companies employing former LH officials who held positions at the department head level or higher will be restricted from bidding on public construction projects ordered within three years of the retiree's departure from LH.
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