At an explanatory session about the promise for the SH Corporation’s innovation
Venue: Seoul City Hall
A series of innovative steps are being taken by the SMG; today, we are announcing our sixth step. At the end of last year, we announced the third step for innovation of SMG-invested institutions. Since then, those 18 institutions have worked hard to come up with plans to innovate themselves that are acceptable to citizens. We at the SMG launched an innovation-related consultant team including experts specializing in safety, welfare, finance, and management.
Today’s announcement about innovation of the SH Corporation will be the first one announced by an institution run by the SMG, and it will have a clear and specific promise. Please watch how we deliver on our promise.
Since its establishment in 1989, the SH Corporation has taken great strides towards housing stabilization in Seoul by supplying 255,000 houses, including 165,000 rental houses. Since my inauguration in October 2011 as the fifth directly elected mayor of Seoul, the corporation has reduced its debts by 6,849 billion won in the midst of difficulties, including a sluggish real estate market. The SMG reduced its debts by 7,289 billion won, including that of the SH Corporation, by the end of last year. We also attained our target of building 80,000 rental houses. Thus, the SH Corporation managed to fulfill its missions of constructing rental houses and securing financial health. I think that the corporation has proven its potential as a body that can innovate itself. Genuine innovation should be made in its inherent business, meaning that it should be able to secure its own engine that can surpass the attainment of tangible targets.
Today, I will present a new blueprint of the innovated SH Corporation. In August of last year, we announced the 4-year Plan of Seoul City Municipal Administration, including the direction of urban regeneration for the next hundred years and a residential welfare designed to lay the groundwork for happiness to be enjoyed by people. The SH Corporation, which will stand tall as a key actor of innovation, will act as a partner of the SMG in matters concerning urban regeneration, and will realize its goal of residential welfare for people.
Many families not owning their homes are groaning under the difficulties caused by jeonse and wolse [rental deposit systems] prices in the new spring, when many of them are forced to move to a new place. We at the SMG will strive to alleviate people’s burden by supplying 10,000 units of customized community houses and the overhaul of houses in the areas that were excluded from the designation as a new town. Please watch how we deliver on our promises.