President Lee Approves Vice Minister Lee’s Dismissal Within a Day of Resignation Offer
Vice Minister Lee Faces Backlash Over YouTube Remarks and Spouse’s Alleged Gap Investment
Issues Video Apology on YouTube, but Criticized as “Perfunctory”... Refuses to Take Questions
On October 25, President Lee Jaemyung approved the dismissal of Lee Sangkyung, the First Vice Minister of Land, Infrastructure and Transport, who had sparked controversy over alleged gap investment in apartments. The Ministry of Land, Infrastructure and Transport accepted his resignation less than a day after announcing to the media on the previous day (October 24) that Vice Minister Lee had expressed his intention to step down.
President Lee appears to have acted swiftly, judging that the controversy could undermine the momentum of the government’s real estate stabilization policies, such as the ‘6·27 Measures,’ ‘9·7 Measures,’ and ‘10·15 Measures.’ President Lee is scheduled to depart for Kuala Lumpur, Malaysia, on October 26 to attend the ASEAN Summit. Vice Minister Lee had attempted to quell the controversy by issuing a video apology on October 23, but the allegations of gap investment and remarks made on a YouTube channel further fueled the backlash, ultimately leading to his resignation.
The criticism surrounding Vice Minister Lee began with a YouTube broadcast discussing the ‘10·15 Real Estate Measures.’ On October 19, he appeared on the broadcast and said, “I’m stressed because I want to buy a house now,” and explained that people could buy a house once prices stabilize and fall. He also stated, “Opportunities will always come back, so there’s no need to react sensitively to measures like designating land transaction permit zones,” which drew public outrage, especially from genuine home seekers without property.
Public opinion worsened further when allegations of gap investment-something the three rounds of real estate measures were supposed to prevent-surfaced. Vice Minister Lee’s spouse purchased an apartment in Baekhyeon-dong, Bundang-gu, Seongnam, Gyeonggi Province, for 3.35 billion won in July last year, and signed a jeonse (long-term lease) contract for 1.48 billion won just three months later in October. Since the jeonse contract was signed before the final payment, the actual purchase price was effectively 1.87 billion won. The same apartment was sold for 4 billion won in June this year.
On October 23, Vice Minister Lee addressed the gap investment allegations in a 1-minute 56-second video apology on YouTube, but was criticized for offering only a perfunctory apology. He stated, “As a senior official at the Ministry of Land, Infrastructure and Transport, I sincerely apologize for causing distress to the public. My spouse purchased the apartment for actual residence, but this did not meet public expectations.” He did not take questions from reporters and disabled the YouTube comment section.
Within the ruling party, concerns were repeatedly raised that trust in both policy direction and policymakers should not be undermined, especially as the Lee Jaemyung administration is making every effort to stabilize real estate prices. Han Junho, a Supreme Council member of the Democratic Party, issued an apology on behalf of Vice Minister Lee for his remarks, while Park Jiweon, the party’s longest-serving and oldest lawmaker, publicly called for his resignation.
Kim Namjoon, spokesperson for the presidential office, commented on the criticism of Vice Minister Lee’s remarks and the government’s real estate policies, stating, “We are listening to the voices of the people with caution and seriousness.” Meanwhile, the government is preparing to introduce even clearer measures than the ‘9·7 Supply Measures,’ following its strong demand-side policies.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
