Seoul: Lee Sang-kyeong, the first vice minister of land, infrastructure and transport, issued a public apology on October 23 following a controversial real estate purchase by his wife that has reignited debates over speculative investing. In a video address, Lee expressed regret for the purchase made in July last year, where his wife acquired an apartment in Bundang, Seongnam, for 3.35 billion won ($2.3 million) under a jeonse lease, a real estate policy noted for its inverse relationship between deposit and rent.
According to Yonhap News Agency, Lee's apology came shortly after his appearance on a YouTube program, where he stated, "It's fine to buy a house once the market stabilizes under government policy." This comment sparked public outrage given the recent government measures on October 15, which tightened loan rules and banned gap investing to combat housing speculation in the Seoul metropolitan area. Although the purchase occurred before Lee assumed public office, many deemed his previous profit inappropriate for an official responsible for housing regulation. Democratic Party (DP) lawmaker Park Ji-won criticized Lee's remarks as "insulting to the public" and called for his resignation.
Public discontent further intensified when another DP lawmaker, Bok Ki-wang, suggested that an apartment worth around 1.5 billion won is within reach for "ordinary people," arguing that the October 15 measures did not affect "ordinary homes" since loans for properties below that threshold remained available. People Power Party (PPP) lawmaker Kim Jae-seop challenged this view, questioning whether inability to afford a home renders someone "untouchable" by DP standards.
The emergency measures implemented on October 15 aim to cool the surging home prices but have simultaneously complicated mortgages and relocations. Policymakers are urged to elucidate the necessity of these restrictions and exercise caution in public statements to avoid undermining the credibility of housing policies with insensitive comments and poor political judgment.
President Lee Jae Myung is urged to address the situation not as a personal scandal but as a matter of public accountability, emphasizing that behavior falling short of public expectations will not be tolerated. With the Bank of Korea maintaining the base rate for the third consecutive time and housing prices continuing their upward trajectory, public anxiety and resentment are escalating. To restore confidence in housing policy, the resignation of the vice minister may be inevitable, as an apology alone may not suffice.
Simultaneously, political overreach in housing matters must be avoided. The PPP has criticized the current housing policy, labeling it as "a total deprivation of homes for young and working-class people," with 15 Seoul district mayors from the PPP demanding the removal of land transaction permit zones. The opposition is encouraged to move beyond criticism and offer practical alternatives that support market stability.