"Secured Homes in Gangnam 3 Districts, Then Pulled Up the Ladder": A Look at Government Officials' Real Estate Holdings [Real Estate AtoZ]

"Is This a Ban on Entering Seoul?"
Public Outrage Erupts in Online Communities
One in Three Presidential Aides Owns Property in the Three Major Gangnam Districts
Senior Housing Policy Officials at the Ministry of Land Have Also Secured Prim

The real estate holdings of presidential aides and high-ranking government officials have come under renewed scrutiny following the October 15 real estate measures. As the government restricts housing accessibility for genuine homebuyers, criticism is mounting that key policymakers and senior officials have already secured their own assets in the form of so-called "smart single properties," prompting accusations that they have "pulled up the ladder" after themselves. Kim Byung-ki, the floor leader of the Democratic Party of Korea, who has defended loan regulations, is now facing intense criticism over his own "gap investment" controversy. In real estate communities, there have been strong reactions such as, "These measures only protect those who already own property," and "It's as if they've issued a ban or an eviction order for young people trying to enter Seoul."

Rose Apartment in Sincheon-dong, Songpa-gu, Seoul, owned by Kim Byung-ki, the floor leader of the Democratic Party of Korea. As it was revealed that he is living in an apartment in Dongjak-gu with a jeonse deposit of 800 million won, the controversy over "gap investment" is spreading. Gji Auction.

According to the asset disclosure data of senior public officials released by the Government Public Officials Ethics Committee on the 18th, 11 out of 31 (35.5%) presidential aides at the secretary level or higher own residential properties in the three major Gangnam districts of Seoul (Gangnam, Seocho, and Songpa), either in their own name or that of their spouse. For example, Kim Sang-ho, the secretary for press support, jointly owns six multi-family homes in Daechi-dong, Gangnam-gu, and an apartment in Gwangjin-gu, Guui-dong, with his spouse. The total value of their real estate holdings amounts to 7.5 billion won. Moon Jin-young, the senior secretary for social affairs, owns a mixed-use residential building in Yeoksam-dong, Gangnam-gu, and an apartment in Ichon-dong, Yongsan-gu. Lee Tae-hyung, the secretary for civil affairs, owns an apartment in Jamsil Woosung Apartment, Songpa-gu.

Senior officials at the Ministry of Land, Infrastructure and Transport are no exception. Lee Sang-kyung, the first vice minister, owns a 117-square-meter unit in Pangyo Prugio Granble, Baekhyeon-dong, Bundang-gu, Seongnam, under his spouse's name (reported value: 3.35 billion won). Kim Kyu-chul, director-general for housing and land, owns an 84-square-meter unit in Yeoksam Prugio, Gangnam-gu, Seoul (reported value: 1.6138 billion won) while living in a rented apartment in Sejong City. Even the senior officials responsible for overseeing real estate policy have already secured their own "smart single property." Both Vice Minister Lee and Director-General Kim played key roles in formulating the October 15 measures and personally handled media interviews and briefings.

Kim Byung-ki, the floor leader of the Democratic Party of Korea, is at the center of the "gap investment" controversy. While defending the October 15 measures, he stated, "It is not normal to buy a house with hundreds of millions or billions of won in debt." However, it was revealed that he jointly owns a 120-square-meter unit in Jangmi Apartment, Jamsil, Songpa-gu, with his spouse, which he has rented out for a jeonse deposit of 800 million won, while he himself lives in a rented apartment in Dongjak-gu, his constituency. Former People Power Party leader Han Dong-hoon criticized him, saying, "Are you telling the public that they can no longer buy homes?" and "Did you buy the Jangmi Apartment, which is slated for reconstruction, entirely in cash without any loans?" Kim responded, "I have lived there since purchasing it in 1998, and this is not a case of gap investment."

Meanwhile, the core of the October 15 measures is the blanket designation of all of Seoul and 12 locations in Gyeonggi Province as regulated areas. The loan-to-value (LTV) ratio for mortgage loans in these regulated areas will be tightened from the existing 70% to 40%, raising the bar for obtaining loans and sparking public backlash. In fact, it is expected that the maximum mortgage amount available in outer districts of Seoul, such as Gangbuk, Guro, and Gwanak, will decrease more than in "Hangang Belt" districts like Mapo, Seongdong, and Gwangjin. For example, for a 1 billion won apartment, the maximum loan amount has been reduced from 600 million won to 400 million won, while for a 1.5 billion won apartment, the maximum loan remains unchanged at 600 million won. As a result, the outer districts, where mid- to low-priced apartments under 1 billion won are concentrated, will be hit harder by the loan regulations.

A real estate expert commented, "While they have already secured their own 'smart single property,' these policies are effectively kicking away the ladder for would-be homeowners trying to enter Seoul. Although the current real estate policy is outwardly presented as aiming for 'housing price stability,' it is in reality more of a 'political act' meant to appeal to supporters, rather than the 'administrative action' the market actually needs."