Value context and insight. lkm@koreatimes.co.kr
Ministry to take over key roles of scandal-tainted LH
Land Minister Noh Hyeong-ouk speaks during a press briefing at the Seoul Government Complex, Monday. Yonhap
By Lee Kyung-min
Structural reform remains critical, unfinished task
By Lee Kyung-min
The scandal-ridden Korea Land and Housing Corp. (LH) will no longer be able to oversee the selection and inspection of sites eligible for state-run public reconstruction and redevelopment projects, with the land ministry taking over this function.
The state-run organization will also see its workforce reduced by over 20 percent, and a variety of employment benefits will be slashed. LH employees will be required to disclose their assets publicly and go through an annual audit of their real estate dealings. Employees in principle will be prohibited from buying land for speculation and those who retain multiple homes for such purposes will be denied promotions.
The Ministry of Land, Infrastructure and Transport announced these measures, Monday, as part of an overhaul of the much-tainted organization that it supervises.
The measures followed a months-long public uproar over the apparent lack of internal control thus far at the organization and the absence of any basic code of conduct that should govern the behavior of civil servants, whose jobs require them to walk a fine line while avoiding the temptation to seek undue profit.
Whether the organization will undergo structural reform remains to be seen, since the discussion is deadlocked over a previous plan to divide it into a holding firm and two or more subsidiaries to help guarantee effective operation and management of housing projects.
“The government will finalize the overhaul measures after ensuring that the principle of checks and balances is strictly in place at LH, where transparency will also be strengthened,” Land Minister Noh Hyeong-ouk said during a press briefing at the Seoul Government Complex. “The role and function of the state-run organization will be redefined to enhance housing welfare for the public.”
The salaries of high-ranking LH employees will be frozen for the next three years, and the organization will see up to a 15 percent cut in discretionary expenses with the overall reduction in employment benefits.
Its evaluation rating will be downgraded, and bonuses given to high-ranking officials will be reclaimed upon review or due to a record of previous irregularities.
More employees will be prohibited from seeking jobs at private firms to prevent conflicts of interest due to their experience and knowledge. Currently this rule applies only to seven high-ranking officials ― this number will be increased to 529.
Firms where LH retirees find jobs will be prohibited from signing business contracts with LH for five years.
According to a pan-governmental special investigative body set up to identify real estate speculation involving civil servants, about 2,800 people were questioned over 646 suspicious incidences over the past few months.
The investigation conducted by police, the prosecution and National Tax Service among other government organizations led to the seizure of 90.8 billion won ($81.6 million) in undue gains.
Thirty-four people were arrested and 529 people were referred to the prosecution for further investigation. Of 454 suspected tax dodgers, people involved in 94 cases will have to pay a combined 53.4 billion won in taxes.