LH headquarters to stay in Jinju after split, vice minister confirms

It has been reaffirmed that the Korea Land and Housing Corporation will keep its headquarters in the Jinju innovation city in South Gyeongsang Province after the planned corporate split.

First Vice Minister of Land, Infrastructure and Transport Kim I-tak said Friday at the "LH Organizational Restructuring Kickoff Meeting," held with LH President Lee Seong-hun and others, that "since LH has already relocated to a regional area, we plan to keep the headquarters of each entity in Jinju even after the organization is divided."

The government's "Public Institution Functional Reform Plan," announced Sept. 3, calls for splitting LH into two separate entities — a housing and urban development corporation and a housing and urban asset corporation. The development arm would handle land development and housing construction, while the asset arm would oversee residential welfare and asset reserves.

At the meeting, the Ministry of Land, Infrastructure and Transport and LH discussed the preparations and key considerations needed to carry out the restructuring process, and agreed to maintain close consultation going forward.

Kim said that "now that the direction of LH's organizational restructuring — which has been under discussion since August last year through the LH Reform Committee and other channels — has been decided, it is time for the ministry and LH to move forward as one team." He added that "starting with today's meeting, we must draw up a concrete restructuring roadmap, address each necessary preparation item one by one, and ensure that follow-up procedures are carried out."

Addressing concerns raised mainly by the union over potential disadvantages in working conditions stemming from a unilateral organizational split, Kim said "the restructuring must be pursued on the basis of trust and communication among the government, the institution and its employees." He also urged LH to "actively listen to employees' difficulties and suggestions, as the government will do its part as well."

Kim further said the government would "carefully ensure that employees do not suffer any disadvantages in pay or other working conditions as a result of the split," adding that the ministry would "actively consult with related ministries, including the Ministry of Economy and Finance."

Kim also said that "core services directly affecting the public — such as housing supply and residential welfare — must continue without disruption throughout the restructuring process," and that "the ministry and LH must work closely together to carry out pressing tasks without setbacks while also advancing the restructuring in a stable manner."