Lee's Key Real Estate Strategist Lee Sangkyung Resigns as Vice Minister Amid Gap Investment Controversy

Resignation Follows Controversy Over Housing Price Remarks and Gap Investment
Apologized for "Causing Distress to the Public," Announces Resignation Within a Day
Pressure to Step Down From Both Ruling and Opposition Parties... Uncertainty Over October 15 Policy Measures
Key Advisor Known as President Lee Jaemyung's "Real Estate Strategist" Steps Down After Four Months

Lee Sangkyung, the First Vice Minister of Land, Infrastructure and Transport, has expressed his intention to resign. His remarks advising people to "buy a house when prices fall," along with controversy over his spouse's high-priced apartment gap investment, sparked public backlash and ultimately led to his decision to step down. As the vice minister responsible for overseeing real estate policy, Lee's actions and statements, which contradicted the government's policy direction, were criticized for undermining public trust, resulting in his disgraceful resignation just four months after taking office.

The Ministry of Land, Infrastructure and Transport announced on the 24th that "Vice Minister Lee Sangkyung has expressed his intention to resign." The previous day, Lee had bowed his head during a live YouTube broadcast, saying, "I sincerely apologize for causing distress to the public," but he did not clarify his position regarding resignation. Instead, he indirectly indicated his intention to remain in office by stating, "I will do my best to stabilize the housing market as soon as possible." However, he reversed his stance within a day.

Recently, during a YouTube broadcast, Lee caused controversy by saying, "You are stressed because you are trying to buy a house now," and "If government policy brings down housing prices, you can buy then." Public criticism intensified when it was revealed that his spouse had purchased a 117-square-meter unit in 'Pangyo Prugio Grandble' in Bundang, Seongnam, for 3.35 billion won last year, using a jeonse deposit of 1.48 billion won. The public accused him of telling citizens to wait while engaging in gap investment (buying a property with a tenant's deposit) himself.

Calls for his resignation grew from both ruling and opposition parties. Song Eonseok, floor leader of the People Power Party, urged Lee to step down, stating, "He is a wealthy individual who mocked the public." Kim Heejung, also of the People Power Party, requested the adoption of a resolution by the Land, Infrastructure and Transport Committee to urge his resignation. Within the ruling party, voices demanding that Lee take responsibility continued to emerge. Park Jiweon, a lawmaker from the Democratic Party, called for his dismissal, saying, "The vice minister responsible for real estate cannot remain in office after making remarks that aggravate the public." Yoon Junbyung, another Democratic Party lawmaker, also criticized Lee, saying, "He must take responsibility himself." However, the Democratic Party leadership initially maintained a cautious stance, arguing that "a vacancy in the vice minister position, which is central to policy implementation, is undesirable."

Lee, who took office on June 30, is stepping down just four months into his term. A graduate of Seoul National University's Department of Urban Engineering, holding bachelor's, master's, and doctoral degrees, he previously served as a professor at Gachon University and participated in various committees at the Ministry of Land, Infrastructure and Transport. He was particularly known as President Lee Jaemyung's "real estate strategist," having been a key advisor since Lee's tenure as mayor of Seongnam, where he helped design policies such as the development profit recovery system and basic housing initiatives. Upon his appointment as First Vice Minister, Lee pledged to "restore a shaken system and usher in an era of 'genuine growth' through innovation," promising to rebuild the housing ladder for young people and non-homeowners. However, his term has ended amid controversy.

With Lee's resignation, the policy drive behind the October 15 real estate measures is expected to lose momentum. Until a new vice minister is appointed, it is anticipated that the government's ability to deliver a strong "housing price stabilization" message will inevitably be weakened.