Lee Chanjin Addresses Controversy Over Owning Two Gangnam Apartments: "Sorry for Causing Concern, Will Take Action" (Comprehensive) [2025 Parliamentary Audit]

Lee Chanjin, Governor of the Financial Supervisory Service, Faces National Assembly Audit
"Currently Owns Two Gangnam Apartments, Will Sell One Soon"
"Will Review Procedures for BNK Financial Group Chairman Election"

Lee Chanjin, Governor of the Financial Supervisory Service, is attending the 2025 National Assembly Political Affairs Committee audit held at the National Assembly on the 21st, responding to lawmakers' questions. Photo by Yonhap News

Lee Chanjin, Governor of the Financial Supervisory Service, has announced his intention to sell one of his two apartments in the Gangnam area within the next month or two.

Governor Lee Likely to Sell One of His Two Gangnam Apartments

Governor Lee made this statement in response to a question from Kang Minkook, a lawmaker from the People Power Party, during the National Assembly Political Affairs Committee audit held in Yeouido, Seoul, on the 21st. Kang had asked, "Would it be credible for the head of the Financial Supervisory Service, who owns multiple homes, to call for reforms to curb the concentration of funds in the real estate sector?"

Governor Lee is known to own two Daelim Apartments in Umyeon-dong, Seocho-gu, Seoul. He purchased one in 2002 and acquired another unit in the same apartment complex in December 2019.

Kim Sanghoon, another lawmaker from the People Power Party, remarked, "Even when you were active in the People's Solidarity for Participatory Democracy, you argued that multi-homeowners should be excluded from high-ranking public office appointments, yet you now own two apartments in a highly expensive area, which seems inconsistent with your previous stance." He added, "Upon taking office, you pledged to break the vicious cycle of rising home prices fueled by real estate loans. I must say, I find this regrettable."

Governor Lee responded, "I will address any issues that do not meet public expectations within a month or two," and added, "I apologize for causing concern."

Opposition lawmakers also criticized Governor Lee for his substantial personal assets. It is reported that while serving as the Chair of the Public Interest Litigation Committee of Lawyers for a Democratic Society (Minbyun), Lee represented farmers in a state compensation lawsuit over the Guro farmland expropriation case and received approximately 40 billion won in legal fees as a result of the victory.

When Kim asked where the 40 billion won is currently kept, Governor Lee replied, "Most of it is held in financial institutions."

Governor Lee also addressed a question from Park Beomgye, a lawmaker from the Democratic Party of Korea, regarding the ongoing BNK Financial Group chairman election, which has been criticized for its lack of transparency. He said, "There are some unusual procedural aspects, so I am monitoring the situation." He added, "When someone becomes the chairman of a financial holding company, there are cases where they fill the board with their own people, effectively creating a kind of trench. This could undermine the public nature of finance, so I will keep a close watch on this issue."

Lee Chanjin, Governor of the Financial Supervisory Service, is attending the 2025 National Assembly Political Affairs Committee audit held at the National Assembly on the 21st, responding to lawmakers' questions. Photo by Yonhap News

"Opposed to Designating the Financial Supervisory Service as a Public Institution"

On this day, Governor Lee made it clear that he opposes designating the Financial Supervisory Service as a public institution. In response to a question from Lee Heonseung, a lawmaker from the People Power Party, about his position on this matter, Governor Lee said, "My personal conviction is that designating it as a public institution raises very serious concerns."

He continued, "Regarding the designation, the Public Institution Management Committee, which will be launched under the revised law, is likely to make a decision after considering a variety of opinions. From the perspective of both the Financial Supervisory Service and myself, I believe we must be very cautious in making this decision, especially considering international principles concerning independence and neutrality."

Last month, the government's organizational restructuring plan was withdrawn, preventing the separation of the Financial Consumer Protection Bureau from the Financial Supervisory Service. However, the possibility remains that the Financial Supervisory Service could be designated as a public institution. The decision on this designation will be made by the government’s Public Institution Management Committee in January next year.

Regarding suspicions of insider trading in stocks by Special Prosecutor Min Junggi, Governor Lee stated that it would be difficult for the Financial Supervisory Service to reopen the investigation, as the statute of limitations has expired. Special Prosecutor Min, who is investigating allegations involving First Lady Kim Keonhee, was found to have made more than 150 million won in profits by selling shares of the solar materials company Neosemitech around 2010, when he was serving as a presiding judge at the High Court (a vice-ministerial level position), leading to suspicions of using undisclosed information.

Lawyer Lee Yangsoo from the People Power Party stated, "Special Prosecutor Min used his friendship with the owner of Neosemitech to sell all his shares just before the company was delisted, earning billions of won in profit. If we check the transaction records from just a week before the delisting, it would be easy to see who received advance notice and sold their shares."

Governor Lee responded, "We investigated this in 2010 and reported or referred 13 individuals to the prosecution. Given that the statute of limitations expired long ago, I believe it would be realistically difficult to reopen the investigation." He added, "Although there are limitations due to the statute of limitations, if there are any issues that require attention, I will look into them."

Plans are also underway to completely overhaul the performance-based compensation (KPI) system in the financial sector. On this day, Kim Seungwon, a lawmaker from the Democratic Party of Korea, pointed out, "The Financial Supervisory Service has pledged to revamp its organization to focus on financial consumers, but in reality, this has not been the case. The review of securities registration statements by the Financial Supervisory Service is merely formal, and when holding product sellers or asset managers accountable, the focus is only on whether they fulfilled their duty to explain, and if problems arise afterward, the responsibility is shifted to the consumer."

In response, Governor Lee said, "I completely agree," adding, "We are using these issues as an opportunity to establish a system that screens for risk factors from the product design stage, and we will also overhaul the procedures." He further stated, "We are currently working on improving the KPI system that is prevalent throughout the financial sector. Since the short-term performance-oriented system encourages misselling, we are shifting the evaluation system to focus on long-term performance and supplementing the clawback system as well."