Opposition slams president's apartment sale as 'trick' to evade loan rules

South Korea's main opposition party, People Power, has accused President Lee Jae-myung of engaging in a "clever transaction" to evade real estate regulations. The criticism centers on the recent sale of an apartment in Bundang, owned by President Lee and his wife, Kim Hye-kyung.

The party alleges that the couple sold their apartment for 2.9 billion won and then, two days later, established a mortgage of 1.77 billion won (approximately 61% of the sale price) for the buyers. People Power's senior spokesperson, Park Sung-hoon, condemned this as a "seller financing" scheme, suggesting it was done to help buyers circumvent loan restrictions and secure their status as cooperative members before a reconstruction project's designation.

"While the ladder for loans for ordinary people has been cut, President Lee is selling his house with a '1.77 billion won mortgage trick,'" Park stated, questioning the extent of the president's "do as I say, not as I do" hypocrisy. He further criticized Lee for imposing strict lending rules on citizens while allegedly using "all sorts of 편법 (illegal or unethical methods) and tricks" to profit from his own property sale.

Former People Power floor leader Song Eon-seok echoed these sentiments, highlighting the difficulty ordinary citizens face in buying or selling homes due to loan restrictions. He argued that while legally permissible, the president's actions would not escape public criticism. Na Kyung-won, a People Power lawmaker, also pointed to the transaction as a "clear conflict of interest," suggesting the president used his position and information to facilitate a unique real estate exit strategy.

The presidential office, however, defended the transaction, stating the mortgage was arranged due to the buyer's circumstances. They also claimed the sale was conducted at a price lower than the market rate and that it demonstrated the president's commitment to real estate normalization policies, despite not being obligated to sell as a single-home owner.