"Wait and Buy... I Already Did": Senior Land Ministry Officials Own Prime Property in Regulated Areas [Real Estate AtoZ]

Five Out of Seven Top Land Ministry Officials Own Apartments in Regulated Areas
Vice Minister Sangkyung Lee Purchases 3.3 Billion Won Pangyo Apartment Using Jeonse... A Typical Gap Investment Structure
No Legal Violation, But Contradicts Governm

A significant number of senior officials at the Ministry of Land, Infrastructure and Transport, the government body responsible for real estate policy, have been found to own apartments in Seoul and Gyeonggi Province (12 locations), which are designated as regulated areas. These are areas subject to multiple layers of restrictions, including land transaction permit zones, as set by the "October 15 Real Estate Measures." Notably, First Vice Minister Sangkyung Lee recently advised people to "save up and buy a house," but he himself has become embroiled in controversy over alleged "gap investment" (buying with a tenant in place), raising questions about his qualifications. While the government has raised barriers to homeownership by implementing stringent loan regulations and residency requirements, critics argue that the policymakers themselves are seizing opportunities to grow their assets.

Ownership of 'Daechang Apartment' in Pangyo and Promising Redevelopment Properties in Yeouido

Sangkyung Lee, First Vice Minister of the Ministry of Land, Infrastructure and Transport. Ministry of Land, Infrastructure and Transport.

According to an analysis on October 22 of the asset disclosures of high-ranking officials by the Government Public Officials Ethics Committee, five out of seven key officials at the Ministry, including vice ministers and directors, own apartments in regulated areas. These locations are simultaneously designated as land transaction permit zones, speculative overheating districts, and adjustment target areas, subject to "triple regulation." Many of these officials reside in rental apartments near the Sejong Government Complex, while maintaining ownership of homes in regulated zones.

According to the disclosure data, First Vice Minister Sangkyung Lee owns, under his spouse's name, a 117-square-meter unit (reported value: 3.35 billion won) in "Pangyo Prugio Grandble" in Baekhyeon-dong, Bundang-gu, Seongnam. This apartment complex, known as the "flagship complex" of the Pangyo area, has sold for as much as 4 billion won this year. Second Vice Minister Heeup Kang owns, in his own name, an 84-square-meter unit (reported value: 805 million won) in "Sanun Village Apartment" in Bundang.

Urban Policy Director Sangjoo Lee owns, under his spouse's name, a 118-square-meter unit (reported value: 1.672 billion won) in "Siheom Apartment" in Yeouido, Yeongdeungpo-gu. Siheom Apartment is considered a prime candidate for redevelopment along the Han River. Its actual transaction price has risen by about 1 billion won since the beginning of the year, now trading at 3.845 billion won. Housing and Land Policy Director Gyucheol Kim jointly owns, with his spouse, an 84-square-meter unit (reported value: 1.56 billion won) in "Yeoksam Prugio" in Yeoksam-dong, Gangnam-gu. Transport and Logistics Policy Director Jeonghee Eom jointly owns a 112-square-meter unit (reported value: 628 million won) in "Hanshin Dongseong Apartment" in Nowon-gu.

Vice Minister Sangkyung Lee, Who Said "Wait and Buy," Faces Gap Investment Controversy

Among these officials, First Vice Minister Sangkyung Lee recently stated on a YouTube broadcast, "If government policy brings down housing prices, you can buy then." However, it was revealed that his spouse bought and sold an apartment through gap investment, sparking public outrage.

Under the latest measures, starting from October 20, anyone buying a home in all of Seoul or 12 locations in Gyeonggi Province must reside there for at least two years. The loan-to-value (LTV) ratio for mortgage loans has also been capped at 40%. Even considering growing complaints among younger generations about "pulling up the real estate ladder," the government prioritized stabilizing housing prices through strong regulations.

Contrary to this policy direction, Vice Minister Lee's spouse purchased the Pangyo Prugio Grandble apartment for 3.35 billion won in July last year. Three months later, in October, a jeonse (long-term deposit lease) contract was signed for 1.48 billion won, covering about half the purchase price with the tenant's deposit. The actual capital invested was about 1.87 billion won. Although there was a gap of about three months, since the property was not purchased for their own residence, it qualifies as a gap investment. To buy this apartment, they sold an 84-square-meter unit in "Pangyo Valley Hoban Summit" in Sujeong-gu, Seongnam, and continued to live there. In effect, they brought in a gap investor, sold their existing home, and used the proceeds for a new gap investment.

A Ministry official explained, "The purchase was made to move into a larger home, but due to a mismatch in move-in and move-out dates with the seller, we had no choice but to lease the property back to the original owner. It was not for speculative purposes."

Calls Grow for Policymakers to Uphold One Household, One Home Residency Principle... Criticism of Double Standards Spreads

Despite these explanations, real estate communities are flooded with criticism that "while telling the public to wait, he himself bought a house through gap investment." If the apartment ownership were a legal issue, it could be settled in court. However, since there is no legal violation, the criticism has only intensified.

In political circles, there are growing calls for senior officials to uphold the principle of one household, one home residency to restore trust in policy. Former lawmaker Tae-seop Keum stated, "If the government is going to introduce such strong regulations, at the very least, officials who influence policy should divest their additional homes. Otherwise, they lose moral legitimacy."

People Power Party Floor Leader Eon-seok Song criticized, "Vice Minister Sangkyung Lee, who made the insensitive 'wait and buy' remark, has assets exceeding 5.6 billion won and owns a 3.3 billion won apartment under his spouse's name. While they enjoy profits from assets worth billions, they are telling the public to 'return to being jeonse or monthly rental refugees' and 'commute three hours from the suburbs.'"