LH execs offer to resign over shoddy construction scandal

Korea Land & Housing Corp. (LH) CEO Lee Han-jun apologizes for discrepancies at 20 apartment complexes and offers to resign for the mishap at a press conference at LH's Seoul regional headquarters, Friday. Yonhap

By Kim Hyun-bin

The CEO and all other executives of the state-run Korea Land & and Housing Corporation (LH) have offered to resign, Friday, taking responsibility for the continued controversy over the botched construction of multiple public apartment complexes. The company announced on Friday that the number of flat-plate-structure apartment complexes with such problems totals 20, five more than announced previously.

"On top of the resignations offered by all our executives, I will follow the decision by the administration (regarding whether I should step down). It reflects our commitment to fundamentally transform LH and drive change through the appointment of new executives,” LH CEO Lee Han-jun said during an emergency press conference held at the LH Seoul Regional Office, Friday.

He also announced plans to transition to a taskforce structure while significantly reducing in-house organizations.

"Our basic approach is to greatly reduce the headquarters organization. Secondly, we will also significantly reduce in-house organizations at the regional offices. Instead, we will enhance on-site execution capabilities," Lee said. He also emphasized the need for swift organizational reform and simplification of tasks.

Among the 102 LH apartment complexes constructed with flat-plate-structure frames, 20 have been confirmed to lack reinforcing bars in their parking garages.

"Emergency safety inspections are underway for these 20 complexes, and we will proceed with prompt reinforcement measures in consultation with residents," Lee added.

Regarding why the total number has risen to 20 from the previous 15, LH explained that those omitted in the previous announcement had less than five bars missing and had already completed reinforcement before July 31.

However, due to growing public concerns regarding the flat-plate structure, LH decided to include the remaining cases and disclose all information.

The announcement follows criticism by Minister of Land, Infrastructure and Transport Won Hee-ryong, who visited public apartment construction sites on Aug. 9 and even questioned the “raison d'etre” of the company.

"I am doubtful if LH, which cannot even compile accurate data, should continue to exist," Won said, instructing LH's president to investigate the omissions thoroughly, report on the causes and establish measures to prevent further such problems.

Additionally, LH announced that it will conduct urgent and precise inspections in collaboration with private contractors for other housing and development projects incorporating flat-plate structures.