Kim Ei-tak, first Vice Minister of the Ministry of Land, Infrastructure and Transport, said on the 11th regarding the organizational restructuring of the Korea Land & Housing Corporation (LH), "Even if the organization is split, we will closely ensure that employees do not suffer disadvantages in pay and other treatment," adding, "It is time for the Ministry of Land, Infrastructure and Transport (MOLIT) and LH to act as one team in carrying out the restructuring."
The Vice Minister said this at the "LH organizational restructuring kickoff meeting" held at 2 p.m. that day, as he discussed with LH President Lee Seong-hun the direction for pushing ahead with the LH restructuring.
On the 3rd, the government announced it would split LH into the "Housing and Urban Development Corporation," which handles land development and construction of dwellings, and the "Housing and Urban Asset Corporation," which is responsible for housing welfare and asset stockpiling. The aim is to separate development and welfare functions to speed up housing supply and improve the financial structure. At this meeting, the Vice Minister began in earnest the follow-up discussions for the LH restructuring.
The Vice Minister said, "Restructuring must proceed based on trust and communication among the government, the institution, and employees," and added, "The government will of course make efforts, but at the institutional level LH should also actively listen to employees' difficulties and suggestions."
He again asked, "So that employees do not feel anxious during the restructuring process and can focus on their duties, I ask the LH president to pay special attention to internal communication and organizational stability."
The Vice Minister's emphasis on communication with employees comes as the union has strongly objected after the LH restructuring announcement, saying there was no prior consultation on the split and calling it a "hasty, unilateral, behind-closed-doors reform." The LH union has collected employee signatures opposing the split and demanded negotiations with management. Depending on the outcome, a general strike remains on the table.
The Vice Minister said LH plans to keep both companies' headquarters in Jinju, South Gyeongsang, even after the split. The Vice Minister said, "Since LH has already moved to a regional location, even if the organization is split, we plan to keep each institution's headquarters in Jinju."
The Vice Minister added, "Core tasks directly tied to the public, such as the supply of dwellings and housing welfare, must proceed without disruption even during the restructuring," and emphasized, "The Ministry of Land, Infrastructure and Transport (MOLIT) and LH must work closely together to carry out pressing current tasks without setbacks while pushing the restructuring forward in a stable manner."