The government announced a reform plan for the state-run Korea Land and Housing Corporation(LH) that seeks to eradicate shoddy construction due to a rigged bidding system.

The land ministry revealed the measures on Tuesday as follow-ups to the collapse of an underground parking garage at an LH apartment complex under construction in Incheon's Geomdan New City area in April that was blamed on the company’s so-called “cartel.”

Under the plan, private builders will be allowed to solely provide public housing in a bid to increase competition between LH and private developers, and those with a higher resident satisfaction score will be awarded more public housing projects.

LH's existing monopolistic authority in selecting design, construction and supervision contractors will be transferred to specialized agencies such as the Public Procurement Service and the Korea Authority of Land and Infrastructure Safety.

In addition to the current ban on contracts with former public officials or their new employers within five years of leaving, a new restriction will also limit the new employers of former executives from bidding within three years of their departure.

All apartment units designed by LH will be verified by an external inspector, while builders that have violated any safety provisions will face a "one strike" system disqualifying them from public projects for a designated period of time.