LH to Be Split into Development and Housing Welfare Entities [Administrative and Public Institution Reorganization]

The number of public institutions under the Ministry of Land, Infrastructure and Transport (MOLIT) will be reduced by 14. Korea Land and Housing Corporation (LH), which has handled everything from land development to rental housing management as a single entity, will be divided into a corporation dedicated to development and another dedicated to housing welfare. The widely anticipated merger of Incheon International Airport Corporation and Korea Airports Corporation (KAC) was excluded from this reorganization.
The 11th Public Institutions Management Committee deliberated and approved a plan containing these measures on the 3rd, according to the government. By ministry, institutions under MOLIT will see the largest reduction, with 14 entities being cut.
The newly established Housing and Urban Development Corporation (tentative name) will be responsible for land development and housing construction. The Housing and Urban Assets Corporation (tentative name) will take over housing welfare, including rental housing, as well as land reserves management. The organizations will be separated, but the link that channels development profits into housing welfare will remain. Under the plan, part of the development corporation's profits will be deposited into a separate account within the Housing and Urban Fund and then contributed to the assets corporation. LH was launched in 2009 through the merger of Korea Land Corporation and Korea National Housing Corporation. If the split is finalized, the organization will effectively return to two separate corporations after 17 years.
The plan to merge Incheon International Airport Corporation and Korea Airports Corporation was not finalized this time. Rather than merging the two corporations first, the government will prioritize measures to revitalize regional airports, saying it will seek ways for Incheon Airport and regional airports to grow together. It will reassess whether to proceed with the merger after reviewing the progress of these policies. Meanwhile, the structure of airport subsidiaries will be streamlined. Korea Airport Security and Incheon Airport Security will be merged into the Airport Security Corporation (tentative name), while subsidiaries responsible for airport services and facility management will also be grouped by function.
In the railway sector, the focus is on consolidating subsidiaries that perform similar functions. Customer service subsidiaries, including KORAIL Tourism Development and KORAIL Networks, will be merged, while distribution and logistics subsidiaries such as KORAIL Logis and KORAIL Retail will also be combined into a single entity. Maintenance subsidiaries will likewise be reorganized through functional adjustments. The proposed merger of Korea Railroad Corporation (KORAIL) and SR Corporation was also included in the reform plan, but high-speed rail operations have already been unified since the 1st. Super Rapid Train (SRT) services have been absorbed into KTX, and passengers can now check and book trains departing from Seoul Station and Suseo Station through a single app. KTX fares have fallen by an average of 10%.
In the spatial information sector, the Spatial Information Industry Promotion Institute and the Spatial Information Quality Management Institute will be combined into the Spatial Information Promotion Institute (tentative name). In the construction sector, the Korea Institute of Construction Technology Education and Korea Construction Information Institute will be merged into the Korea Construction Industry Promotion Institute (tentative name). The National Aviation Museum of Korea and the National Saemangeum Reclamation Museum will be integrated into the Land, Infrastructure and Transport Hall (tentative name). The aim is to improve operational efficiency by bringing scattered functions of a similar nature together in one place.
[email protected] Reporter Jeong Gyeong-su Reporter