South Korea defends Lee’s apartment financing deal

Participants raise their hands to ask South Korean President Lee Jae Myung (C) questions during the National Grand Debate on Real Estate Policy in Seoul, South Korea, 23 July 2026. The forum, broadcast live by KBS, brought together members of the public, experts and government officials to discuss housing supply, lending regulations and possible reforms to property ownership and transaction taxes amid rising home prices. Photo by YONHAP / EPA July 22 (Asia Today) -- Cheong Wa Dae has launched an intensive effort to defend President Lee Jae Myung's sale of his apartment in Bundang as criticism mounts over the unusual financing arrangement. Officials are concerned that accusations Lee circumvented housing regulations could undermine public confidence in the government's real estate policies. Critics have argued that the president helped a buyer finance an expensive apartment while his administration has made it more difficult for ordinary people to obtain mortgages. The dispute comes ahead of Thursday's national debate on housing policy and planned changes to the government's real estate measures. Officials appear concerned that the president's personal transaction could weaken momentum for the policy overhaul. Cheong Wa Dae used its online policy information program, "Fact Mill," on Wednesday to explain why the buyer could not pay the remaining balance at once and why a mortgage lien was placed on the property. The presidential office said the transaction was legal and followed a commonly used procedure. Lee recently sold the apartment in Bundang, Seongnam, Gyeonggi Province, for 2.9 billion won, or about $1.96 million. He established a maximum secured claim of 1.77 billion won, or about $1.2 million, on the property because the buyer lacked sufficient funds to pay the balance. Lee also agreed not to charge interest, citing the buyer's financial circumstances. Critics said the arrangement effectively allowed the president to provide private financing that enabled the buyer to purchase a high-priced apartment despite the government's tighter mortgage restrictions. They said the transaction appeared inconsistent with the administration's message that people without sufficient financial resources should not purchase expensive homes. Han Moon-do, a professor of real estate at Seoul Digital University who appeared on "Fact Mill," described the mortgage lien as "a very common legal arrangement." Han said Lee had lived in the apartment as the owner of a single home and was under no obligation to sell it. He also said Lee gave up potential gains he could have received as a member of the apartment complex's redevelopment association. "It demonstrated his strong commitment to real estate policy," Han said. Han said the lien was intended to accommodate the buyer, who was having difficulty obtaining the funds needed to complete the purchase. Cheong Wa Dae issued a similar explanation Tuesday evening. Its decision to respond for a second consecutive day suggests officials believe the controversy could continue to spread. Criticism has emerged not only from political circles but also in online real estate communities. Some users said the transaction was an option available only to a president living in an official residence or to wealthy property owners. Others said Lee could have sold the apartment through conventional financing if he had lowered the price further. Despite Cheong Wa Dae's response, it remains unclear whether the dispute will subside quickly. Housing remains a highly sensitive issue in South Korea and the focus of the controversy has shifted from whether the transaction was legal to whether the arrangement was fair to ordinary homebuyers struggling under tighter lending restrictions. -- Reported by Asia Today; translated by UPI © Asia Today. Unauthorized reproduction or redistribution prohibited. Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260722010008170 Read More First-time homebuyers in Seoul hit 4-year high in April South Korean banks face $716 million in long-overdue loans South Korean banks tighten lending as quotas fill early