LH to set up ‘anti-cartel’ headquarters in overhaul after poor parking lot construction

The state-run Korea Land & Housing Corp. (LH) said Wednesday it will establish an “anti-cartel” headquarters under its wing to root out malpractices at construction sites in an overhaul of the shoddy work on underground parking lots at apartment complexes built under contracts with the housing developer.

The pledge came amid the intense government-led scrutiny over revelations that the LH has overlooked the insufficient use of metal bars in building underground parking lots at a number of apartment complexes across the country.

The discovery was made after one of the LH-led ongoing construction sites in Incheon, 27 kilometers west of Seoul, collapsed in April.

“I sincerely apologize for the unfortunate incident that occurred at LH apartment complexes, which should be the safest place for the people,” LH President Lee Han-joon told a press conference.

“We will come up with the toughest measures with the resolve that there will be no future for LH if we fail to establish construction safety this time,” he said.

The anti-cartel department will be located at LH’s southern regional headquarters in Gyeonggi Province and take charge of eradicating all kinds of malpractices or acts of corruption that might occur over the construction process, such as collusion in the purchases of construction parts, unfair selection of design and irregularities in contracts, LH said.

Lee said that LH will also consider disqualifying any subcontractors from construction projects if they are found to be the cause of or involved in malpractices.

LH said it will file complaints with the police seeking investigations into the companies responsible for 15 construction sites found to have been built with fewer reinforcement bars, an outcome determined by the land ministry after a probe.

The overhaul plans came a day after President Yoon Suk Yeol vowed to eradicate such cartels in the construction industry and ordered thorough safety checks on all suspected cases and countermeasures to ensure residents’ safety.