Lee Jae-myung Accused of Circumventing Real Estate Rules with 'Creative Gap Investment'

Presidential candidate Lee Jae-myung is under fire for allegedly using a controversial method to sell his apartment, bypassing real estate regulations. The controversy centers on the sale of his long-held apartment in Bundang, Seongnam, for 2.9 billion won, while simultaneously establishing a mortgage of approximately 1.77 billion won on the property.

Critics argue that this maneuver constitutes 'creative gap investment,' a tactic used to circumvent the land transaction permit system and strict loan-to-value ratios. This system, intended to curb speculative investment and control housing prices, restricts the freedom of residents to move and limits their ability to secure housing loans.

The article suggests that Lee Jae-myung's actions, as a prominent political figure who has advocated for stricter real estate policies, are particularly contentious. The report implies that his method of selling the property, while setting up a substantial mortgage, allowed him to liquidate his asset while potentially retaining some financial leverage or circumventing capital gains taxes, though this is not explicitly stated.

This practice has ignited debate about the fairness and transparency of real estate transactions, especially when undertaken by public figures. The report highlights the tension between the government's efforts to stabilize the housing market through regulations and the methods individuals employ to navigate or exploit these rules for personal financial gain.

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President Lee Jae-myung personally implemented methods to circumvent his own real estate policies.