[Exclusive] Noh Young-min Lists 'Banpo Apartment' for Sale at Market Price

Hanshin Sorae 46㎡ Listed as Property for Sale Since Afternoon
Offered at 1.1 Billion KRW..."Sold by Evening"
Estimated Capital Gain Over 800 Million KRW...Also Reducing Capital Gains Tax

No Young-min, Chief Presidential Secretary of the Blue House, and Kim Hyun-mi, Minister of Land, Infrastructure and Transport, are conversing at the Cabinet meeting held at the Blue House on the morning of the 7th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] It has been confirmed that the Hanshin Serae Apartment in Banpo-dong, Seocho-gu, Seoul, which Chief Presidential Secretary to the President at the Blue House, Noh Young-min, announced on the 8th that he would dispose of, was sold immediately on the same day. This apartment, which had been criticized as a "Gangnam house chosen even by Blue House aides," was sold at market price after a bidding competition broke out as soon as it was listed for sale that day.

According to the real estate brokerage industry on the 9th, the 46㎡ (exclusive area) Hanshin Serae apartment jointly owned by Noh and his wife was listed for sale the previous afternoon. Noh had stated on social media (SNS) the day before, "I have decided to dispose of the Seoul-based (Hanshin Serae) apartment within this month as soon as the family's housing issues are resolved."

Built in 1987, this apartment is a 46㎡ corridor-style unit. Noh purchased this property jointly with his wife in 2006. A representative from nearby A real estate agency said, "It was listed for 1.1 billion KRW, but the contract was signed that evening at a price slightly higher than the asking price," adding, "The condition was that the interior of the house was not to be seen." Another agency representative confirmed, "It is indeed the house where Noh's son lived."

Earlier, on the 2nd, Noh had announced his intention to sell the Banpo-dong apartment but quickly corrected it to say he would sell the apartment in Cheongju, Chungbuk. After public opinion worsened and criticism arose even within the ruling party, he finally announced the plan to dispose of the Banpo apartment, saying, "I apologize for not meeting the public's expectations."

As this apartment became known as the one chosen by Noh, inquiries for purchase surged, causing the asking price to rise recently. The 46㎡ unit had last been transacted for 1 billion KRW in October last year and had no transactions since, but recent deals have been reported. The current asking price ranges from at least 1.1 billion to 1.14 billion KRW.

Despite this housing sale, the industry criticizes the Blue House for sending a 'Gangnam invincible' signal to the market while claiming to control housing prices. Considering that Noh purchased the apartment for 280 million KRW, he made a capital gain of over 800 million KRW and also saved more than 300 million KRW in capital gains tax.

If he had sold the Banpo apartment first, a heavy capital gains tax rate would have applied, requiring about 400 million KRW in tax. However, by selling the Cheongju apartment first and then disposing of the Banpo apartment as a single-homeowner, he received a long-term holding special deduction for single-homeowners on the capital gains exceeding 900 million KRW, resulting in a tax payment of around 50 million KRW. Opposition parties such as the United Future Party criticized, saying, "Even in this situation, he is faithful to tax-saving strategies."

Meanwhile, as Noh, who was a two-homeowner, became a non-homeowner by selling both properties, pressure to sell is expected to increase on other multi-homeowner Blue House aides. For example, Chief of Civil Affairs at the Blue House, Kim Jowon, and his spouse own apartments in Dogok-dong, Gangnam-gu, and Jamsil-dong, Songpa-gu, Seoul. The market prices of these apartments are estimated to be around 1.7 billion KRW and between 1.7 to 1.8 billion KRW, respectively.