The Presidential Office on Tuesday addressed public scrutiny surrounding the sale of a property previously owned by Lee Jae-myung, a prominent political figure, stating that the transaction was conducted through a “comprehensive method” and that the establishment of a mortgage was a transparent process based on the mutual agreement of the parties involved.
A spokesperson for the Presidential Office issued a statement urging caution regarding inaccurate claims and reports related to the former presidential candidate’s property dealings. The clarification comes after criticism arose suggesting that the sale of Lee’s apartment in Bundang, valued at 2.9 billion won, was inconsistent with the current administration’s stricter lending regulations. Specifically, concerns were raised about the property’s ownership being transferred before the full payment of the remaining balance, which reportedly amounted to 1.77 billion won, and the subsequent registration of a mortgage.
Detailed Explanation of the Property Transaction
The Presidential Office emphasized that the property in question was a single-family home where Lee and his spouse had resided for 28 years. The office asserted that the sale was undertaken with the intention of demonstrating a commitment to stabilizing the real estate market. It was further explained that the transaction was priced below market value, foregoing potential profits, as a measure to contribute to market normalization.
Regarding the mortgage registration of approximately 1.77 billion won, the Presidential Office clarified that this was a mortgage established to cover the outstanding balance, which was scheduled to be settled by the end of October. The office stated that the transfer of ownership prior to the full payment was carried out with consideration for the buyer’s circumstances.
Addressing Concerns Over Lending Regulations
Critics had pointed to the transaction as being out of step with the government’s current loan-to-value (LTV) ratio policies, which are designed to curb excessive borrowing in the real estate market. The perceived discrepancy between the sale’s terms and the administration’s financial regulations fueled debate and criticism.
Rebuttal on Redevelopment Zone Designation
Furthermore, the Presidential Office refuted claims that the property was designated as a redevelopment zone during the current administration’s tenure. The office stated that the designation of the property as a redevelopment zone was made in November 2024, during the previous administration, and that at that time, the mayor of Seongnam City was affiliated with the opposition party. Therefore, the Presidential Office dismissed the suggestion that the redevelopment zone designation was a special favor as “absurd.”
Background of the Controversy
The controversy initially surfaced when reports detailed the specifics of the property sale. Lee Jae-myung, a former governor of Gyeonggi Province and a presidential candidate, sold his apartment in Bundang, a district known for its affluent residential areas. The sale price was reported as 2.9 billion won. However, the details surrounding the payment structure and the timing of the ownership transfer drew significant attention.
Specifically, the reporting highlighted that the ownership of the property was transferred to the buyer before the full payment of 1.77 billion won in remaining balance was completed. This practice, coupled with the registration of a substantial mortgage, raised questions about compliance with financial regulations, particularly in light of the current government’s efforts to tighten lending rules and cool down the overheated housing market.
Government’s Stance on Real Estate Policy
The current administration has consistently emphasized its commitment to stabilizing the real estate market and ensuring fair housing practices. Policies aimed at controlling housing prices, preventing speculative investments, and ensuring responsible lending have been central to its economic agenda. The perceived deviation from these principles in the sale of Lee’s property led to accusations of hypocrisy or preferential treatment.
Transparency and Mutual Agreement
In its defense, the Presidential Office stressed that all aspects of the transaction, including the mortgage establishment, were carried out with transparency and based on the mutual consent of both the seller and the buyer. The office aimed to reassure the public that the process adhered to legal and ethical standards, despite the appearance of conflicting practices with current policies.
The Role of the Mortgage
The mortgage of 1.77 billion won was explained as a financial arrangement to facilitate the sale by bridging the gap until the buyer could finalize the remaining payment. This is a common practice in real estate transactions, though the timing and amount, in this specific case, became a focal point of public discussion.
Conclusion
The Presidential Office’s detailed explanation sought to clarify the circumstances surrounding the property sale, emphasizing transparency, mutual agreement, and adherence to legal procedures. By providing context on the timeline, the financial arrangements, and refuting specific allegations, the office aimed to quell the controversy and reaffirm its commitment to fair real estate practices, while also highlighting the historical context of certain designations related to the property.
