LH bars two companies from participating in selection competitions for two years over improper prior contact; permanently revokes five panelists’ eligibility

[Financial News] Korea Land and Housing Corporation (LH) has barred two companies implicated in improper conduct, including prior contact, during the selection of materials and construction methods from participating in selection competitions for two years. Five external review committee members have been permanently stripped of their eligibility to serve as selection committee members.
LH said on the 10th that it had recently convened the Materials and Construction Methods Sanctions Review Committee and decided on sanctions against the companies and review committee members. The restriction on the companies takes effect on the date of the committee’s decision.
Based on related tips and other information, LH directly requested a police investigation last year. Following the Gwangju Metropolitan Police Agency’s announcement of its findings this September, LH proceeded with sanctions under its internal Guidelines for the Operation of the Materials and Construction Methods Selection Committee.
The Sanctions Review Committee was composed entirely of external members. LH said it ensured the independence and fairness of the review by not participating in the decision.
LH is also improving its procedures for selecting review committee members and conducting evaluations. Introduced in May 2024, the automated selection system (ACS) randomly selects members for each case and discloses the results when the review is held. Until the review begins, no one—including LH employees—can find out who has been selected.
Since this September, LH has also been operating a “fully blind review system.” Under the system, even LH staff in charge cannot see the first-stage evaluation results, including company rankings and proposed prices, until the review committee completes its second-stage evaluation.
LH plans to strengthen its management systems, including monitoring companies and review committee members.
An LH official said, “We are working to establish a fair and transparent process for selecting materials and construction methods through continuous institutional improvements,” adding, “We will do our utmost through a range of measures to eradicate corruption and improper conduct.”

[email protected] Choi Ga-young Reporter