President Lee Jae-myung Sells Bundang Apartment, Becomes Non-Homeowner Amid Reconstruction Regulations

President Lee Jae-myung has sold his apartment in Bundang, a district in Seongnam, Gyeonggi Province, after owning it for 28 years. The property, located in Yangji Village, was sold for 2.9 billion won, making Lee and his wife, Kim Hye-kyung, non-homeowners.

The ownership transfer was completed on July 16, following a sales contract signed on July 14. Notably, before the sale was finalized, Lee and Kim jointly placed a mortgage with a maximum claim amount of 1.77 billion won (61% of the sale price) on the apartment, naming the buyers as beneficiaries.

This move has been interpreted as a strategy to navigate complex reconstruction regulations. Yangji Village is in the process of being designated as a reconstruction site, and Bundang is a regulated speculative overheating zone. Under these regulations, if a property is sold after the reconstruction project's business entity is officially designated, the buyer may lose their right to a new apartment if the seller has not resided in the property for at least five years while owning it for over 10 years. Lee has owned the apartment since 1998, but Kim was added to the title only in 2018, falling short of the 10-year ownership requirement for Kim.

To ensure the buyers could secure their rights as cooperative members for the reconstruction, the mortgage was reportedly set up before the full payment of the remaining balance, allowing for priority registration. The presidential office explained the mortgage was "due to the buyers' circumstances." They added that the sale was conducted at a price lower than the market rate and, despite not being obligated to sell as a single-home owner, it demonstrated Lee's commitment to real estate policy normalization.

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The sale was conducted at a price lower than the market rate, and although he was not obligated to sell as a single-home owner, it demonstrates his will to realize real estate normalization policy.