Vice Minister of Land: "LH Headquarters to Remain in Jinju Despite Restructuring, No Disadvantages for Employees"

▲ Kim Yi-tak, First Vice Minister of Land, Infrastructure and Transport

Kim Yi-tak, First Vice Minister of Land, Infrastructure and Transport, has outlined a direction emphasizing that the reorganization of Korea Land and Housing Corporation (LH)—pursued as part of the public institution functional reform announced by the government earlier this month—must be carried out based on trust and communication among the government, the institution, and its employees.

Vice Minister Kim discussed future implementation directions for the LH organizational restructuring during the "LH Reorganization Kick-off Meeting" attended by LH President Lee Seong-hoon and other officials today (September 11).

Previously, the government unveiled a preliminary outline for organizational restructuring to separate LH's functions: the land development and housing construction functions will be spun off into the tentatively named "Korea Urban & Housing Development Corporation," while the public housing welfare and asset stockpiling functions will become the tentatively named "Korea Housing & Urban Asset Corporation."

A connection has also been established where a portion of the development corporation's profits will be accumulated in a separate account within the National Housing Fund and contributed to the asset corporation, ensuring that development profits flow into resources for housing welfare.

However, as the LH labor union has opposed the spinoff plan and demanded negotiations with management, prompting backlash among members, pacifying internal public opinion before the announcement of specific reorganization measures remains a critical task.

"Even if the organization is divided, we will carefully look into ensuring that employees do not suffer disadvantages in terms of compensation and other treatment," Vice Minister Kim said. "The Ministry of Land, Infrastructure and Transport will also actively consult with related ministries such as the Ministry of Finance and Economy."

He also added, "Since LH is an institution that has already relocated to the provinces, we plan to keep the headquarters of each respective institution in Jinju even if the organization is divided. I ask the LH president to pay special attention to internal communication and organizational stability so that employees can focus on their assigned duties without anxiety during the restructuring process."

(Photo: Yonhap News)

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