LH Faces High-intensity Restructuring: Organizational Culture Must Change to Ensure a Bright Future

It appears that the Korea Land and Housing Corporation (LH) is currently undergoing a process of intensive restructuring. In addition to structural changes, it is necessary for the organization’s culture to shift towards a more positive and transparent approach.

Recently, it was revealed that LH had omitted the inclusion of 5 apartment complexes with missing reinforcement bars in their initial announcement. This news came as a surprise to President Seok-yeol Yoon, who promptly ordered the implementation of ‘LH Innovation’. This indicates that the president recognizes the severity of the situation and is determined to bring about significant changes within LH.

President Yoon’s order for ‘LH Innovation’ was delivered late in the evening, further emphasizing the importance he places on addressing this issue. In response to this development, LH President Lee Han-joon held an emergency press conference and acknowledged the additional missing complexes. As a result, the number of apartment complexes without proper reinforcement increased from 91 to 102, and the number of buildings without reinforcement rose from 15 to 20.

Taking responsibility for the oversight, President Lee accepted the resignations of all executives and announced a large-scale personnel renewal. On the 14th, four out of seven LH executives were dismissed from their positions. President Lee himself expressed his intention to resign, but President Yoon intervened and ordered innovation directly from him, maintaining confidence in his leadership.

This incident follows the revelation of LH’s organizational insolvency during the investigation of the Incheon Geomdan underground parking collapse accident. President Lee recognized the need for profound restructuring and stated that LH will accept resignations from all executive officers and replace them with new personnel in an effort to fundamentally innovate the organization.

Furthermore, it has come to light that LH has poor internal control and a high number of disciplinary cases involving its executives and employees. This includes serious actions such as suspensions, dismissals, and demotions. The formation of a strong cartel among former and current LH employees in the construction industry has exacerbated the problem. Many of the design and supervision companies involved in the missing reinforcement bars incident have ties to LH employees. LH has requested a police investigation into these individuals.

While LH had previously pledged to transform itself through innovation following the land speculation incident in 2021, it is evident that progress has been lacking. Experts suggest that alongside personnel renewal, a change in LH’s organizational culture is necessary. They recommend implementing a system of strict punishment and monitoring to uphold accountability. This would help create a sense of urgency and prevent similar incidents from occurring in the future.

The political sphere also emphasizes the need for a thorough overhaul of LH. The People’s Power party spokesperson, Kim Min-soo, asserts that LH must be held accountable for its failure to reflect on and address past issues. Corruption and construction cartels need to be thoroughly investigated and punished.

In conclusion, LH is undergoing a significant restructuring process. President Yoon’s order for ‘LH Innovation’ underscores the urgency of the situation. The resignation of executives and the intention to replace them with new personnel aim to drive fundamental change within the organization. It is crucial for LH to address its internal control issues and reform its organizational culture to ensure transparency and accountability. The demand for change extends beyond LH, with experts and the political world calling for a comprehensive investigation and punishment of those involved in corruption and construction cartels within the industry.

Reporter Yoonyoung Bang, Money Today | 2023.08.13 14:30

It seems that LH is going through the process of high intensity restructuring … Organizational culture must also change to ‘bee and hundred’.

President Yoon Seok-yeol delivers a welcome speech at a dinner for independence activists and bereaved families held at the Blue House hotel on the 9th. /Photo = News 1 (Office of the President) When the fact that the Korea Land and Housing Corporation (LH) excluded 5 apartment complexes with ‘missing rebar’ from the original announcement was belatedly revealed for the reason that ‘the matter fach’, even the President. Seok-yeol Yoon stepped up and said ‘I ordered ‘LH Innovation’. As the president comes out, LH will inevitably innovate at a dismantling level.

尹, order ‘LH Innovation’ beyond 9pm… Profound restructuring notice

According to the Office of the President on the 13th, President Yoon ordered Land, Infrastructure and Transport Minister Won Hee-ryong and LH President Lee Han-joon to “implement breakthrough and build the LH cartel without a hitch” late on the night of the 11th . . The fact that the message came out late at night proves that President Yoon considers the LH matter as a serious matter.

Lee Han-joon, president of LH, held an emergency press conference on the 11th and announced that there are 5 additional complexes with steel bars missing among public apartment complexes with plate structure much less underground parking. When Money Today reported that more complexes were missing from rebar the day before, he admitted that five more complexes were missing from the report. As a result, the number of apartment complexes without applied back structures increased from 91 to 102, and the number of insolvent building complexes without rebar increased from 15 to 20, respectively.

President Lee took responsibility for the understatement of omitting rebars and accepted resignations from all executives, anticipating a large-scale personnel renewal. On the 14th, 4 out of 7 LH executives were dismissed from their positions. President Lee also decided to follow the will of the government and expressed his intention to resign, but it is seen that President Yoon ordered innovation directly from President Lee and re-confidence.

Starting with the Incheon Geomdan underground parking collapse accident, LH’s organizational insolvency was revealed in the process of its investigation and resolution, and President Lee predicted a profound restructuring.

President Lee said, “As an expression of our will to fundamentally innovate LH, we will accept resignations from all executive officers and replace LH with new personnel.” We need to transform into an organization dedicated to the cause.”
Lee Han-joon, president of the Korea Land and Housing Corporation (LH), listens to reporters’ questions at an emergency press conference held at the LH Seoul regional headquarters in Gangnam-gu, Seoul on the morning of the 11th. /Photo = News

Most of the ‘rebuke’ even when disciplined… “We need to change the organizational culture to ‘bee and hundred'”

Amidst this, a situation arose that LH’s internal control was also poor. According to Park Sang-hyeok, a member of the Democratic Party of Korea, the number of internal disciplinary cases of LH executives and employees between 2018 and August 1 this year was counted as 299. Among them, 81 cases involved suspension ( 32 cases), dismissal (24 cases), dismissal (18 cases), and demotion (7 cases), which are serious disciplinary actions. The former is also the cause of this problem. Attention is drawn to the fact that former and current employees of LH, which is omnipresent in the construction industry, formed a strong cartel as LH executives and employees got a job in a design, construction and supervision company as ex-courtesies after retirement. Most of the design and supervision companies that omitted the reinforcing bars this time have been established or are currently employed by LH employees, and LH asked the police to investigate the people under attention

This is why LH has announced that it will transform itself through innovation at the level of dismantling after the land speculation incident by former and current employees in 2021, but it is noted that, two years later, it has retreated rather than innovated .

Experts suggested that there was a need to renew and restructure personnel, but that LH’s own organizational culture should be changed. It is said that there is a need for a system of punishment where severe punishment is given according to the severity and a monitoring function to maintain it. Professor Choi Myung-ki of Korea Industrial Field Professor said, “In addition to heavy punishment, there will only be changes in the LH organization when there is a strong punishment and monitoring system, such as claiming the right to indemnity for damages caused to the company depending on the case, to create tension.”

The political world also emphasized the need for a full renewal of LH. People’s Power spokesperson Kim Min-soo said, “LH promised to ‘dismantle level innovation’ due to employee real estate speculation just two years ago, but it has become an organization that threatens people’s lives and safety without any self-reflection and change. “Corruption and construction cartels must be thoroughly investigated and punished.”

[저작권자 @머니투데이, 무단전재 및 재배포 금지]

#Destroy #construction #cartel #president #furious #dismantled #level #inevitable #innovation