Ruling Party Accuses President Lee of Normalizing 'Improper Loans' in High-End Housing Market

South Korea's People Power Party has sharply criticized President Lee Jae-myung, accusing him of setting a precedent for "circumvention loans" through his sale of an apartment in Bundang, Seongnam. The party claims that Lee's use of a 1.77 billion won seller's mortgage, a practice they term the "Lee Jae-myung-style '1.77 billion won improper loan guideline,'" is rapidly becoming a standard transaction method in the high-priced apartment markets of affluent areas like Gangnam and Seocho, and is now spreading to areas like Gwanggyo.

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Lee Jae-myung-style '1.77 billion won improper loan guideline' is now becoming a universal transaction method in the real estate market.

Party spokesperson Cho Yong-sul stated in a commentary that the current administration, while imposing strict loan regulations that effectively limit home purchases to those with substantial cash reserves, has simultaneously "paved a detour" through improper loans. He argued that President Lee's transaction facilitated this by allowing him to borrow money through such means, thereby creating an alternative route for those seeking to finance property purchases.

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The Lee administration blocked the market with loan regulations, saying 'Only those with cash should buy houses,' but President Lee himself pioneered a detour by lending money through improper loans.

Cho further asserted that these regulations have not normalized the market as intended. Instead, they have created "detours and improper methods" that are accessible only to a select few. The party views this as a more serious issue, especially since the President's own transaction appears to have given this method "official certification" within the market, normalizing what they consider an irregular practice.

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The regulation did not normalize the market, but rather created detours and improper methods that only a few can use.

The People Power Party's criticism highlights a growing political divide over real estate and economic policies. They contend that the administration's approach benefits a small segment of the population by creating loopholes, rather than fostering a fair and accessible housing market for all.

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What is more serious is that this method has been virtually 'officially certified' in the market through the President's own transaction, as if it were a legitimate way to conduct business.