The labor union at Korea Land & Housing Corporation (LH) has issued a statement opposing the government's plan to split the agency and called for full consultation. The union said the government is pushing ahead unilaterally with a plan to divide LH into two companies, and hinted that it could go on strike. Because LH plays a central role in the government's drive to accelerate housing supply, a strike would inevitably disrupt supply plans.
LH's union issued the statement on the 4th expressing concern about the government's plan to split the corporation, according to LH and other sources on the 9th. The union said the government announced the reorganization unilaterally and that sufficient consultation with employees is needed.
The government announced on the 3rd a plan to split LH into two entities, tentatively named the Housing and Urban Development Corporation and the Housing and Urban Asset Corporation. Once the reform plan is released late this month, the separation process is set to begin as early as next month. Under the plan, the development corporation would handle housing construction and supply, while the asset corporation would manage rental housing operations, housing welfare and the purchase of land and homes.
The government stressed that separating development from rental and housing welfare functions would allow the development corporation to concentrate on land development and housing construction and supply, further speeding up supply.
The union is calling for negotiations with the government, saying the voices of LH employees must be reflected in the reform plan. An LH official said the union has not yet taken concrete industrial action such as a general strike.
