LH President Lee Han-jun "Unaware" of Yongsan Children's Garden Favoritism and Dual Position Violation (Comprehensive) [2024 National Audit]

"Yongsan Children's Garden, No Direct Consultation"
"Strike Caused Sudden Increase in Cases" → "Management and Supervision Issues"

During the National Assembly audit of the Korea Land and Housing Corporation (LH), opposition party lawmakers continued their questioning targeting the Presidential Office. They focused on whether the Presidential Office intervened in the suddenly installed 'Fountain Garden' at the temporarily opened Yongsan Children's Garden, and whether there was any preferential treatment by First Lady Kim Keon-hee in awarding contracts to specific companies. Regarding these suspicions, LH President Lee Han-jun mostly responded with "I don't know."

Lee Han-jun, President of Korea Land and Housing Corporation (LH), is taking the oath as a witness at the National Assembly's Land, Infrastructure and Transport Committee's audit held on the morning of the 10th. / Photo by Yonhap News

On the 10th, at the National Assembly audit held at the National Assembly, Jeong Jun-ho, a member of the Land, Infrastructure and Transport Committee from the Democratic Party of Korea, asked, "Did the Presidential Office or the First Lady intervene in the Yongsan Children's Garden project?" President Lee Han-jun denied, saying, "The Yongsan project is close to power, so when the administration changes, various issues may arise, so we are carefully managing it. LH is a trustee agency, so if the budget is diverted and given, we just execute it." He added, "The LH president has never once gone to the site to directly discuss work related to the Yongsan Children's Garden."

Democratic Party lawmaker Han Jun-ho pointed out that President Lee violated the 'prohibition of concurrent positions' by being registered as the chairman (CEO) of the National Vision Research Institute without obtaining permission or reporting. President Lee explained, "I was unaware and there is no possibility of conflict of interest." He added, "I resigned 7 to 8 years ago but it was not properly settled," but it was confirmed that he also holds an advisory position at the Korea Transportation Engineers Association, a nonprofit corporation. According to Article 37 of the Act on the Management of Public Institutions and internal regulations, LH employees are prohibited from holding concurrent positions for profit, and in the case of nonprofit positions, permission from the Ministry of Land, Infrastructure and Transport is required.

During the audit, criticism also continued regarding the speed and quality of LH's public housing supply. In response to Democratic Party lawmaker Jeon Yong-gi's remark that the number of defects in LH apartments is increasing, President Lee explained, "The recently completed houses were started three years ago, during which there were many strikes by the Cargo Solidarity and construction unions." He also said, "Material delivery was delayed due to the Ukraine-Russia war, and the influx of foreign unskilled labor increased sharply within three years." When opposition lawmakers criticized that blaming the strikes for the surge in defects was inappropriate, President Lee took a step back, saying, "Ultimately, the biggest problem was the management and supervision by LH employees."

In response to Democratic Party lawmaker Lee Yeon-hee's question about the poor performance in public housing construction and permits, he emphasized, "I promise to start construction on 50,000 households without delay by December 31 and report the results." He added, "LH's work practices are operated so that projects are completed in the fourth quarter (October to December)." He further explained, "Next year, the goal is to start construction on 60,000 households, but to prevent concerns, 10,000 households will be started in the first half of next year." According to the lawmaker's office, as of August this year, the number of public housing units started was only 236, which is 0.47% of the plan (50,120 units). Permits were planned for 67,962 units, but as of the end of August, only 94 units (0.14%) had been approved.

Additionally, President Lee expressed regret regarding the delay in the main subscription for public sale complexes that had received preliminary subscriptions, saying, "I apologize to those who are experiencing difficulties."