Leadership vacancies at key public agencies under the Ministry of Land, Infrastructure and Transport, including the Korea Land and Housing Corporation (LH) and the Korea Railroad Corporation, are extending. LH has been operating under an acting leadership for eight months, while the Korea Railroad Corporation has initiated a new search for its chairman due to the fallout from safety incidents. Concerns are growing over the prolonged absence of leadership at agencies responsible for major national projects such as public housing supply and railway network expansion.
According to relevant departments and industry sources on the 25th, the selection process for the LH president remains stalled at the review stage by the Public Institution Operating Committee. Initially, there were expectations that a new president could be appointed by June, but the appointment proposal was excluded from the agenda during the committee's meeting on the 18th, effectively derailing any plans for a selection in the first half of the year.
Since the Public Institution Operating Committee does not hold regular meetings, the timeline for future meetings remains uncertain. Industry insiders suggest that a special meeting could occur as early as July, but if delays continue, the process may extend into August.
LH has been under an acting leadership since the retirement of former president Lee Han-jun last October. Although an internal candidate was considered a strong contender during a public recruitment process in November, the appointment was halted at the final stage. A new recruitment process was initiated in April, but delays following a failed recruitment have pushed the vacancy period to over eight months.
Some analysts interpret this leadership vacuum as a reflection of the government's distrust towards LH. President Lee Jae-myung previously criticized LH's leadership during a report to the Ministry of Land, Infrastructure and Transport, questioning the lack of external candidates. Recently, a presidential secretary with a background in the ministry was mentioned as a potential candidate, but the proposal was not brought to the committee, increasing uncertainty around the appointment.
The extended leadership vacancy is also placing pressure on public housing supply policies. The government had outlined plans in its September 9-7 supply strategy to initiate construction of 1,349,000 housing units in the metropolitan area by 2030, with LH at the forefront. However, the ongoing delay in appointing a president could weaken the momentum for implementing these policies.
LH maintains that existing projects, including the development of third-generation new towns and public housing supply, are proceeding as planned. However, there are interpretations that issues requiring leadership judgment, such as organizational restructuring, long-term management strategies, and innovation initiatives, are effectively on hold pending the appointment of a new president. The timeline for the Ministry of Land, Infrastructure and Transport's anticipated reform plan for LH, which was expected to be announced in the first half of the year, is currently unclear.
The Korea Railroad Corporation is also experiencing a leadership gap. On the 18th, the corporation resumed the public recruitment process for a new chairman. Previously, the selection process had been halted after safety issues, including the omission of rebar in the GTX-A Samsung Station section and the collapse of the Seosomun overpass, prompted a reevaluation of candidates.
The Korea Railroad Corporation oversees projects such as the GTX initiative, railway undergrounding, and high-speed rail expansion. It is currently pushing for a railway construction budget of 22.431 trillion won this year and faces numerous pressing issues, including the full opening of the GTX-A line and the B and C line projects. Industry sources anticipate that the selection of the next chairman could occur as early as late August or as late as September.
An industry insider noted, "While neither agency is currently at a standstill, the longer the leadership gap persists, the greater the burden will be for external negotiations, organizational management, and long-term decision-making. The LH reform plan and railway safety enhancement measures are likely to gain traction under the new leadership."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.