Financial Services Commission Nominee Lee Eokwon Faces Speculation Allegations Over Gangnam Reconstruction Investments During Overseas Assignments

Purchased Old Gangnam Reconstruction Apartments Twice Before Overseas Assignments in 2005 and 2013
Kim Jaeseop: "Speculative Behavior Out of Touch with Ordinary Citizens"

It has been revealed that Lee Eokwon, the nominee for Chairman of the Financial Services Commission, purchased apartments in Gangnam designated for reconstruction each time he was dispatched overseas. He did not actually reside in these properties after purchase, and it was found that he made a profit from the transactions.

On September 1, Assemblyman Kim Jaeseop of the People Power Party stated that Lee had purchased old apartments in Gangnam slated for reconstruction twice, once in 2005 and again in 2013, just before being dispatched overseas. As a result, he now owns an apartment valued at up to 5 billion KRW (approximately 50 billion KRW).

According to the personnel hearing documents submitted to Assemblyman Kim by the Financial Services Commission and other sources, Lee purchased an apartment in Gaepo Jugong Complex 3 (35.87 square meters) in Gangnam for 350 million KRW just before being dispatched to the Korea Investment Corporation in the United States in 2005. He did not reside in the apartment after purchase and, before being dispatched to the United Nations Mission in Geneva in 2013, sold it for 545 million KRW, making a profit of about 200 million KRW. The apartment has since been reconstructed and is now known as DH Honor Hills.

Kim Jaeseop, a member of the People Power Party, is giving an interview to Asia Economy at the National Assembly on the 12th. Photo by Kim Hyunmin kimhyun81@

During the same period, Lee purchased another apartment in Gaepo Jugong Complex 1 (58.08 square meters) for 850 million KRW. This apartment has since been reconstructed and is now known as DH Firstier I-Park. Its current market value is estimated to be between 4.7 and 5 billion KRW. According to Assemblyman Kim, Lee's actual residences were rental apartments in Daechi-dong and Dogok-dong, or an apartment in Suji, Yongin. Assemblyman Kim explained, "The old Gangnam apartments designated for reconstruction were used solely for investment purposes."

Assemblyman Kim Jaeseop pointed out, "The apartment owned by the nominee is in the same complex as the 5 billion KRW Gangnam apartment that recently sparked controversy involving Minister Koo Yooncheol." He added, "It is incomprehensible to the public that candidates for public office are repeatedly implicated in speculative investments in Gangnam reconstruction projects." He continued, "Lee purchased Gangnam reconstruction apartments immediately before both of his overseas assignments, which is a typical speculative behavior rather than for actual residence." He further criticized, "While ordinary citizens are even restricted from taking out loans, the nominee for Financial Services Commission Chairman has increased his assets by billions of KRW through reconstruction investments. Can a candidate who has profited so greatly from Gangnam real estate truly be committed to stabilizing housing prices through policy?"