Hwang Sang-ha, president of the Seoul Housing and Communities Corporation (SH Corporation), marked his 100th day in office on the 8th. The first president from within the corporation since its establishment in 1989, he decided to add 'development' to SH Corporation's primary goal of 'housing stability.' Hwang noted during a meeting with ChosunBiz the day before, "SH Corporation is the only public enterprise capable of development in Seoul," adding that it will "provide convenience to citizens of Seoul while expanding and developing the city."
SH Corporation plans to also remain committed to 'housing stability.' It intends to supply 3,500 units of its 'Miryounai House (long-term rental housing II)' to newlyweds this year, increasing to 4,000 units annually starting next year. He stated, "I recently visited 'Miryounai House Lotte Castle East Pole,' and the satisfaction levels of the newlyweds I met on-site were extremely high," adding, "There are policies that preferentially purchase 'Miryounai Houses' near supermarkets, kindergartens, and schools."
Since the development of the Han River is a long-term initiative, there is a commitment to ensure that the public can benefit from the value of the Han River. Plans for the next several decades of development are being studied in collaboration with the Seoul City, starting with the Han River bus, a giant Ferris wheel, and Han River gondolas.
Hwang visited work sites tirelessly since receiving his appointment letter at the end of December last year. He remarked, "The workers on-site are the most important assets of the corporation. I checked to ensure they were working safely as the thawing season approaches." He also exerted effort in restructuring internal organizations during the past 100 days. He established systems for 'integrated process management' to ensure operations from project planning to marketing departments run smoothly and 'integrated cost management' to oversee cost management through the final stages of projects.
Within SH Corporation, assessments following Hwang's appointment indicate that it has become 'stable.' Employees, who have experienced ups and downs over the past 35 years with presidents from outside the organization, have high expectations for Hwang. Hwang stated, "I have higher expectations of our employees," adding, "Since my appointment, the employees have been saying, 'We are all candidates for president.' I aim for everyone to look in the same direction and provide appropriate compensation accordingly as an internal management goal."
Next is a question-and-answer session with President Hwang.
-What are your feelings on marking your 100th day in office?
"I have worked at SH Corporation for 35 years. I think of my first 100 days as the 'president's' work. While I held positions like executive and acting president, I had already engaged in decision-making and external activities. Most of the 100 days post-appointment were spent tidying up our working methods and the necessary decision-making process."
-I heard that you have visited many sites.
"The on-site workers are the most important assets of the corporation. I confirmed that they are working safely on-site. Additionally, there are many precautions that need to be observed during thawing. Recent safety incidents have also been considered. Recently, there are redevelopment projects by SH Corporation involving local residents' assets, such as redevelopment and 'moat towns.' The voices from the field are crucial for these projects."
-There have been many changes at SH Corporation before your appointment.
"Yes. The most representative change is that SH Corporation has decided to operate the Han River Bus, which is 51% funded by the corporation. We are also pushing forward with comprehensive development projects that were not present in the past. We are currently engaged in a total of 27 comprehensive development projects. Decisions were made individually on projects that had been stagnating for several years."
-During the first press conference on Feb. 11, you said, 'I am a Seoul expert.'
"SH Corporation is a public enterprise fully funded by the Seoul City. Having worked at SH Corporation for the past 35 years, I believe I understand the opinions, requests, and hopes of Seoul citizens regarding housing better than anyone else. What SH Corporation excels at is 'serving the citizens of Seoul.' Given the 'pre-project, post-recovery' approach, the capital of SH Corporation should primarily be utilized in Seoul. In the future, we will seek projects within the city, and not in other regions. However, we will carefully discuss initiatives like the city's friendly exchange project 'Gold City' in directions we can excel at."
-SH Corporation expressed a willingness to actively participate in future development projects.
"Our corporation's name will be changed from 'Seoul Housing and Communities Corporation' to 'Seoul Housing and Urban Development Corporation.' It's not just a name change. The objective of the local government ordinance is also specified as 'contributing to the improvement of citizens' welfare and housing stability while promoting regional economic development and revitalization.' This adds 'development' to the existing 'housing welfare.' The only development public enterprise that can enhance urban competitiveness through development in Seoul is SH Corporation. Recently, SH Corporation increased its authorized capital to 12 trillion won through board resolution, enabling Seoul City to provide convenience to citizens more quickly."
-You cited 'Miryounai House' to solve the low birth rate and 'Han River development' as key projects to enhance urban competitiveness.
"Yes. To achieve the supply goal of Miryounai Houses set by Seoul City, we are responsible for the entrusted supply and management of 'construction' and 'purchase-type Miryounai Houses.' We will also supply non-apartment type Miryounai Houses in connection with rental housing and long-term secure housing in the future."
Han River development has been approached from a passive perspective focused mainly on 'flood control' to prevent flooding. Now, it must transition into a 'water-friendly' space that citizens can enjoy in their daily lives. Cities ranking high in urban competitiveness, such as London, New York, Paris, and Tokyo, all have rivers traversing their urban centers like Seoul does, and they actively utilize these waterfront spaces to enhance urban appeal and the quality of life for citizens. SH Corporation is pushing ahead with projects aimed at revitalizing water-based spaces that citizens can experience as part of the 'Great Han River Project' and 'River City Seoul,' including ▲Han River buses ▲a giant Ferris wheel ▲floating hotels ▲and art piers.
-Are there additional development projects planned?
"There are many. The current projects, such as Guryong Village and Seongdui Village, are similar to past projects in their approach. New ones are comprehensive projects that utilize communal land to provide social overhead capital (SOC) facilities and shared facilities while securing public housing from SH Corporation. These projects can revitalizing the local community."
-What aspects are being emphasized in housing stability-related projects?
"Public redevelopment and 'moat towns' are projects that did not exist before. Moreover, there is a project to reconstruct aging public rental housing. This involves incorporating social overhead capital facilities into the housing, enabling both sale and rental to achieve social mixing. We aim to realize high-quality rental dwellings like 'Tower Palace.'"
-There are concerns about the financial health of SH Corporation.
"SH Corporation has operated its projects using a 'cross-subsidy' structure, which has compensated for rental housing losses through revenue from large-scale land development projects. However, as the potential development sites within Seoul have recently diminished, it is becoming difficult to sustain the cross-subsidy approach."
To secure financial health, we plan to focus on mitigating rental housing losses, diversifying projects, and discovering new revenue streams. We also intend to push forward with projects using a private collaborative model. Such projects should not raise significant concerns regarding financial health. Recently, we are also focusing on selling land, which is not easy due to the poor economic situation. We hold marketing meetings once a week and plan to have a project briefing session this month.
-You are the first president from within SH Corporation. Employees may be curious about your 35 years of experience.
"It is not appropriate to talk about my past work experience now. I spent more time at work than at home. Typically, we say a generation is about 30 years, but we cannot repeat past working styles. I will retire on December 27, 2023, having spent a year observing SH Corporation through the eyes of an outsider. I was always anxious and desperately hoped it would go well. That period is somewhat helpful now."
This year, I reflected on what SH Corporation lacks and concluded there are issues with the organizational structure. SH Corporation is a very difficult organization to increase personnel. We cannot simply increase staff because there is a lot of work. The current organization structure is a functional type, and the problem with a functional structure is that collaboration is challenging. It is difficult to work actively together in the processes of construction, civil engineering, sales, and asset management. Therefore, we created the systems for integrated process management and integrated cost management.
-There are high expectations from employees.
"Employees said when I became president, 'We are all candidates for president.' I am the longest-serving employee of SH Corporation. When an outsider becomes the head, it's natural to play the hierarchy game, but that has disappeared now. I believe the employees trust me a lot. I hope they will work together in one direction."
Moreover, public enterprises have a very conservative structure for compensation. I am thinking about what rewards I can give to those who work diligently. This will likely be my biggest concern until I finish my term. The best welfare of a public enterprise is to achieve a 'first-grade' management evaluation. I am steadily building that up.