Korea Land and Housing Corporation operational issues

The Korea Land and Housing Corporation (LH) is facing scrutiny regarding its operational management and housing delivery. Data released by National Assembly member Jeong Hee-yong indicates a significant backlog of approximately 209,270 approved housing units that have yet to begin construction. These stalled projects, which include both sale and rental units, are primarily concentrated in the Seoul metropolitan area, Gyeonggi Province, and Incheon. Delays are largely attributed to ‘immature land conditions’—such as ongoing compensation issues and incomplete infrastructure—as well as administrative hurdles like local government negotiations.

In a separate development, Representative Kim Mi-ae reported that LH has been providing housing loans to its employees that exceed government-mandated limits and offer more favorable terms than standard regulations. Between 2021 and August 2024, LH issued approximately 82.9 billion won in new housing loans to staff. Findings show that LH employees could receive up to 140 million won for rental deposits, surpassing the 70 million won cap set by the Ministry of Economy and Finance. Additionally, LH’s interest rates for rental loans were found to be lower than the Bank of Korea’s reported household loan rate, and the corporation did not apply required Loan-to-Value (LTV) ratios for home purchases. LH has stated that changes to these benefits require labor union consent and is working to improve standards.