Yoo Byeong-tae, President of the Korea Housing & Urban Guarantee Corporation (HUG), submitted his resignation to the Ministry of Land, Infrastructure and Transport on the 23rd. It has been two years since he took office in June 2023.
It appears that HUG's receiving a D grade (unsatisfactory) for two consecutive years in the public institution management performance evaluation influenced this decision. The government recommends dismissal if the head of an institution receives a "very unsatisfactory" evaluation or a "unsatisfactory" grade for two consecutive years and meets the tenure requirements; Yoo has met these requirements this year and is now under consideration for dismissal.
As rental fraud increases, HUG's accident amounts for rental deposit return guarantees have been rising every year, with 4.4896 trillion won recorded last year alone. Last year, it also reported a net loss of 2.5198 trillion won, marking three consecutive years of net losses. This has significantly weakened its financial soundness, leading to consecutive unsatisfactory evaluations in management assessments.
HUG is the only institution this year to have a dismissal recommendation in the management evaluation.
The government plans to require underperforming institutions to submit management improvement plans and will continue follow-up measures, including management improvement consulting.