To respond to the damage caused by jeonse fraud, the Korea Housing & Urban Guarantee Corporation (HUG), which is struggling with a labor shortage, will expand the scope of work for employees under the wage peak system instead of hiring new personnel. Employees under the wage peak system will be deployed in the "Dundun Jeonse Housing" project, which directly purchases jeonse fraud-affected dwellings and supplies them as jeonse housing.
HUG has fallen into financial and labor difficulties due to its response to damages from jeonse fraud over the past three years. However, as it received a low grade in the public agency management evaluation and lacks the capacity to expand its workforce, it chose to utilize existing employees under the wage peak system.
According to HUG on the 22nd, the corporation has completed expanding the scope of work for employees under the wage peak system last month, simplifying the rank system to a specialized committee. Accordingly, the scope of work now includes tasks related to the purchase and rental management of Dundun Jeonse Housing.
The Dundun Jeonse Housing project, in which employees under the wage peak system are deployed, is a project where HUG directly wins bids for dwellings that have gone to auction after substitute payment for jeonse fraud damages and supplies them at lower prices compared to the market.
Since last year, HUG has newly taken charge of this project and mainly conducts housing guarantee work, leading to a lack of personnel specialized in rental management for Dundun Jeonse Housing. Amidst the already increased workload due to the response to jeonse fraud damages, there have been internal complaints about taking on the new tasks of managing buildings and tenants for the Dundun Jeonse Housing project.
Still, HUG finds it difficult to expand its workforce. HUG has received a grade of insufficient (Grade D) in public agency management evaluations for three consecutive years, which, along with a reduction in current expenses, has limited its capacity to increase its workforce.
For this reason, HUG, which is struggling to find labor, has decided to utilize employees under the wage peak system for new tasks. This decision aims to maximize the absorption of new tasks through the efficient use of existing personnel without new hiring. Employees under the wage peak system will receive performance-based compensation after qualitative and quantitative evaluations. In the case of excellent performers, re-employment after retirement is also possible.
A HUG official noted, "We have expanded the scope of work for wage peak system employees and improved the performance management system to actively leverage their practical and professional experiences to strengthen support for the operational departments. We anticipate that facilitating the implementation of corporation tasks, including new tasks such as Dundun Jeonse Housing, will contribute to improving customer service."