President Lee Rejects 'Gap Investment' Claims on Housing Policy

President Lee Jae-myung has directly addressed and refuted recent media reports suggesting that the government's proposed policy change regarding land transactions would effectively permit 'gap investment,' a speculative practice where buyers purchase property with the intention of reselling it quickly for profit, often by leveraging rental income.

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The claim that this effectively allows gap investment is closer to 'eok-kka' (forced criticism).

The controversy stems from a plan by the Ministry of Land, Infrastructure and Transport to allow non-resident, single-homeowners in designated land transaction permit zones to sell their homes, even if occupied by tenants. The proposed measure would grant a grace period of up to two years for the buyer, who must be a non-homeowner, to move in after the existing tenant's lease expires. This has been interpreted by some as a loophole that facilitates speculative investment.

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To ensure fairness, we are giving an opportunity to 1-homeowners with tenants, just like multi-homeowners, by limiting the buyer to non-homeowners and allowing them to move in after the existing tenant's remaining lease period, not exceeding a maximum of 2 years.

President Lee, speaking through his social media, characterized these interpretations as "forced criticism" or 'eok-kka' in Korean slang. He clarified that the policy aims to provide an opportunity for single-homeowners who are unable to sell their properties within the typical 4-6 month window due to existing leases. The policy mandates that the buyer must pay the full sale price, including the tenant's deposit, and move in within two years. Lee argued that this provision, which requires the buyer to eventually occupy the property and involves significant financial commitment, is not equivalent to enabling speculative 'gap investment.'

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This is to give an opportunity to 1-homeowners who cannot sell within 4-6 months due to the lease period, but the buyer must pay the full deposit and move in within 2 years.

Lee reiterated his administration's commitment to curbing real estate speculation, calling it a crucial step for the nation's normalization and sustainable development. He urged public cooperation in preventing a resurgence of real estate speculation, questioning who would truly benefit from such practices.

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To say that this allows gap investment is excessive.