LH Denies Entrusting High-Interest Loan Firm with Housing Sale Tasks

The Korea Land and Housing Corporation (LH) has refuted claims that it outsourced property registration duties for the sale of public rental housing in Hyang-dong, Goyang, to a law firm allegedly involved in high-interest loan operations. LH clarified that the law firm in question was not contracted by LH but was instead selected and engaged by the tenant representative council for the property conversion process.

Reports had surfaced suggesting that some real estate agents were directing residents, particularly those struggling to obtain conventional bank loans, towards high-interest, short-term loans offered by a specific law firm, referred to as J Law Firm. These agents reportedly presented the firm as being "guaranteed by LH" or "connected to LH," leveraging the firm's role in handling ownership transfer registration for the public rental housing conversion.

LH has strongly denied any such association, emphasizing that it did not entrust the law firm with any related tasks and that the firm's loan products and any separate business activities are entirely independent of LH. The corporation stated that the tenant representative council directly chose and contracted the firm for the ownership transfer registration work. The controversy highlights concerns that residents might mistakenly believe the financial products offered by the law firm are endorsed or guaranteed by a public institution due to the firm's involvement in the official conversion process.

In response to the issue, LH announced plans to enhance guidance and on-site inspections for residents of public rental housing undergoing property conversion. This includes reiterating that any loan products handled by law firms involved in ownership transfer registration are not affiliated with or guaranteed by LH. The corporation also intends to request cooperation from tenant representative councils to ensure that selected law firms do not promote loan products to residents. Furthermore, LH will strengthen guidance for real estate agents near conversion sites to prevent them from misrepresenting financial products as being linked to LH, thereby preventing residents from falling prey to high-interest or illegal loan schemes.