“Destroy the construction cartel” The president is also furious… LH dismantling level innovation inevitable

2023-08-13 05:30:20

Correspondent Yoonyoung Bang, Money Today | 2023.08.13 14:30

LH seems to be going through the process of high-intensity restructuring… Organizational culture must also be changed to ‘one bee and one hundred’

President Yoon Seok-yeol gives a welcome speech at a luncheon for independence activists and bereaved families held at the Blue House guesthouse on the 9th. /Picture = News 1 (President’s Office) When the fact that Korea Land and Housing Corporation (LH) excluded 5 apartment complexes with ‘missing rebar’ from the original announcement for the reason that ‘the matter is minor’ was revealed belatedly, even President Seok-yeol Yoon stepped up and said ‘ I ordered ‘LH Innovation’. As the president came out, LH is expected to inevitably innovate at the level of dismantlement.

尹, ordering ‘LH Innovation’ beyond 9pm… Intensive restructuring notice

According to the Presidential Office on the 13th, President Yoon ordered Land, Infrastructure and Transport Minister Won Hee-ryong and LH President Lee Han-joon to “implement the LH innovation and construction cartel breakthrough without a hitch” late on the night of the 11th. The fact that the message came out late at night proves that President Yoon views the LH issue as a serious issue.

Lee Han-joon, president of LH, held an emergency press conference on the 11th and announced that there are 5 additional complexes with missing steel bars among public apartment complexes with an underground parking lot-less plate structure. When Money Today reported that there were more complexes missing rebar the day before, he admitted that there were five more missing complexes in the report. As a result, the number of apartment complexes with no-rear structures applied increased from 91 to 102, and the number of insolvent construction complexes without rebar increased from 15 to 20, respectively.

President Lee took responsibility for the understatement of the omission of rebars and received resignations from all executives, foretelling a large-scale personnel renewal. On the 14th, 4 out of 7 LH executives were dismissed from their positions. President Lee also decided to follow the will of the government and expressed his intention to resign, but it is observed that President Yoon directly ordered innovation from President Lee and re-confidence.

Starting with the Incheon Geomdan underground parking lot collapse accident, LH’s organizational insolvency was revealed in the process of investigating and resolving it, and President Lee predicted an intensive restructuring.

President Lee said, “As an expression of our will to fundamentally innovate LH, we will receive resignations from all executives and change LH through new personnel.” We need to transform into an organization dedicated to the cause.”
Lee Han-joon, president of Korea Land and Housing Corporation (LH), listens to reporters’ questions at an emergency press conference held at the LH Seoul regional headquarters in Gangnam-gu, Seoul on the morning of the 11th. /Photo = Newsis

Most of the ‘reprimand’ even when disciplined… “We need to change the organizational culture to ‘one bee and one hundred'”

In the midst of this, a situation was raised that LH’s internal control was also poor. According to Park Sang-hyeok, a member of the Democratic Party of Korea, the number of internal disciplinary cases of LH executives and employees from 2018 to August 1 of this year was counted as 299. Among them, 81 cases included suspension (32 cases), dismissal (24 cases), dismissal (18 cases), and demotion (7 cases), which are serious disciplinary actions. The former is also the cause of this problem. It is pointed out that former and current LH employees, who are omnidirectional in the construction industry, formed a strong cartel as LH executives and employees got a job at a design, construction, and supervision company as a former courtesy after retirement. Most of the design and supervision companies that skipped the reinforcing bars this time were founded or are currently in office by employees from LH, and LH requested the police to investigate the people involved.

This is why LH has announced that it will transform itself through innovation at the level of dismantling after the land speculation incident by former and current employees in 2021, but it is pointed out that two years later, it has retreated rather than innovated.

Experts suggested that personnel renewal and restructuring are necessary, but that the LH organizational culture itself should be changed. It is said that there is a need for a punishment system in which severe punishment is given according to the severity and a monitoring function to support it. Professor Choi Myung-ki of the Korea Industrial Field Professor said, “In addition to heavy punishment, there will be changes in the LH organization only when there is a strong punishment and monitoring system, such as claiming the right to indemnity for damages caused to the company depending on the case, to create tension.”

The political world also emphasized the need for a full-scale renovation of LH. People’s Power spokesman Kim Min-soo said, “LH pledged to ‘dismantle-level innovation’ due to real estate speculation by employees just two years ago, but it has become an institution that threatens people’s lives and safety without any self-reflection and change.” Corruption and construction cartels must be thoroughly investigated and punished.”

[저작권자 @머니투데이, 무단전재 및 재배포 금지]

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