[2025 National Audit]
Debate Over Accountability for Real Estate Policies
Speculation Allegations Among Senior Officials Under Scrutiny
Aftermath of Former Vice Minister Lee Sangkyung's Controversy
Controversy Over Spokesperson Being Placed o
On October 29, opposition party lawmakers pressed Minister of Land, Infrastructure and Transport Kim Yoonduk at the National Assembly’s Land, Infrastructure and Transport Committee’s comprehensive audit, holding him accountable for recent real estate controversies. After targeting Lee Sangkyung, former First Vice Minister of Land, Infrastructure and Transport, as well as senior officials from the Presidential Office and government over allegations of real estate speculation, they sharply criticized the current administration’s real estate policies as being out of touch with public sentiment.
"Do you not even know the rate of housing price increases?"... Minister Kim responds, "This is not a memory test"
Kim Doeup, a lawmaker from the People Power Party, criticized Minister Kim, saying, "Why are you not listening to the public’s reactions after the June 27 loan regulations, the September 7 supply measures, and the October 15 measures? Even if you lack expertise and competence, do you still claim that President Lee Jaemyung’s administration is handling real estate policy well under these circumstances?"
When Minister Kim responded, "I ask you to refrain from making personal attacks," Assemblyman Kim shot back, "What do you mean by personal attacks? Please be specific. Are you saying you are competent?" Minister Kim replied, "I ask you to refrain from expressing yourself so directly." During this exchange, Assemblyman Kim raised his voice.
When Assemblyman Kim repeatedly asked about the rate of increase in Seoul apartment prices in October, Minister Kim replied, "It has gone up a lot, but I do not know the exact figure." Assemblyman Kim then pressed, "As the Minister of Land, Infrastructure and Transport, who oversees real estate policy, are you not interested in how much Seoul apartment prices-currently the most sensitive and pressing issue-have risen?" Minister Kim responded, "I am interested. I would prefer if you did not question me as if this were a memory test." As the tension between Assemblyman Kim and Minister Kim continued, lawmakers from both parties began shouting, and when the situation failed to calm down, Maeng Sungkyu, Chair of the Land, Infrastructure and Transport Committee, declared a recess.
Ruling and Opposition Parties Clash Over the October 15 Measures
Kim Yoonduk, Minister of Land, Infrastructure and Transport, attended the 2025 Comprehensive Government Audit held by the National Assembly Land, Infrastructure and Transport Committee on the 29th, observing the exchanges between ruling and opposition party lawmakers over real estate policies. Photo by Yonhap News Agency
The audit chamber became a battleground over real estate policies, centering on the October 15 measures. Bae Junyoung, a lawmaker from the People Power Party, criticized the October 15 measures, stating, "The Lee Jaemyung administration is repeating the same mistakes as the Moon Jaein administration. The government and speculators are fighting like whales, while ordinary people are being crushed and the ladder for housing welfare is being kicked away." Kim Doeup, also from the same party, pointed out regarding the September 7 supply measures, "It has been over a month since the government announced it would supply 1.35 million housing units, but there has been no announcement at all about how many units will be supplied specifically to Seoul and the metropolitan area, or how the supply will be divided between the private and public sectors." He added, "Saying that detailed supply plans for each district in Seoul will only be announced at the end of the year or the beginning of next year is an insult to the public."
In response, Lee Yeonhee, a lawmaker from the Democratic Party, countered, "If you want to criticize President Lee Jaemyung’s real estate policy, you should first reflect on and apologize for the supply cliff that occurred under the Yoon Sukyeol administration. The current overheating of the Seoul real estate market stems from the supply cliff that began in 2022." She continued, "If you criticize the 28 measures under the Moon Jaein administration, then by the same standard, the Yoon Sukyeol administration also announced 25 measures over three years."
Lee Jongwook, a lawmaker from the People Power Party, commented on the reconstruction excess profit recovery system (commonly known as 'reconstruction windfall tax'), saying, "Reconstruction and redevelopment are the most certain means of increasing supply, but signals such as abolishing the windfall tax to open up a private-led market will not be accepted. Because of the limitations of progressive governments, they inevitably revert to regulatory policies, and as a result, real estate prices always skyrocket under left-leaning administrations." When Minister Kim stated, regarding the potential abolition of the windfall tax, "It is preferable for the Ministry of Land, Infrastructure and Transport to seek reasonable alternatives together with the National Assembly, rather than deciding its position first during the parliamentary discussion stage," Assemblyman Lee criticized, "That sounds like shifting responsibility to the National Assembly. The Ministry, which knows the situation on the ground best, should present its position more proactively." Minister Kim replied, "Abolishing the windfall tax would trigger a speculative frenzy, so it must never be done. It must be maintained." Regarding Assemblywoman Lee Yeonhee’s comments, he added, "I agree with much of what you said," reaffirming the intention to maintain the policy.
Moon Jinseok, a lawmaker from the Democratic Party, refuted opposition lawmakers’ claims that "within two weeks of the October 15 measures, listings disappeared, jeonse (long-term lease) contracts vanished, prices surged, and monthly rents accelerated," stating, "These phenomena were not caused by the October 15 measures." He asked Minister Kim, "Is the conversion from jeonse to monthly rent the fault of the Lee Jaemyung administration, which has only been in office for four months?" When Minister Kim replied, "According to statistical trends, the conversion from jeonse to monthly rent has been ongoing for quite some time," Assemblyman Moon explained, "Due to the jeonse fraud, demand for multi-family and villa units has plummeted, and the number of new constructions, which used to be around 40,000 units per year, has dropped to 75%, collapsing the jeonse ladder." He added, "Since 2023, the conversion from jeonse to monthly rent has continued steadily, and the rise in jeonse prices is due to the sharp decrease in new multi-unit, row house, and villa constructions."
Multiple Properties and Gap Investment Allegations Among Senior Officials... Kim Yoonduk: "Considering Real Estate Blind Trust System"
Kim Yoonduk, Minister of Land, Infrastructure and Transport, attended the 2025 comprehensive government audit held by the National Assembly Land, Infrastructure and Transport Committee on the 29th and reported on the improvement directions for the issues pointed out during the audit period. Photo by Yonhap News
The issue of multiple property ownership and real estate transactions by ruling party and government officials was also raised. Kim Jungjae, a lawmaker from the People Power Party, mentioned Kim Yongbeom, Policy Chief at the Presidential Office; Lee Sangkyung, former First Vice Minister of Land, Infrastructure and Transport; Lee Chanjin, Governor of the Financial Supervisory Service; and Lee Hanju, former head of the Democratic Research Institute, stating, "It is wrong for policymakers to buy homes through gap investments or loans and then call ordinary people speculators." When Assemblyman Kim asked, "Can you, as Minister, recommend to the President and his aides that they sell their homes immediately?" Minister Kim replied, "I will consider it." Assemblyman Kim continued, "President Lee Jaemyung also promised to sell his house in Bundang during the 2022 National Assembly election for Gyeyang, Incheon, but he still owns it. He should keep his promise to sell his Bundang residence."
When Kim Heejeong, a lawmaker from the People Power Party, asked whether the government would pursue President Lee Jaemyung’s previously proposed 'real estate blind trust system' as government legislation, Minister Kim replied, "I view the President’s earlier remarks positively and will consider it." The real estate blind trust system requires public officials to entrust their real estate holdings to a third-party trust institution and prohibits them from managing or disposing of those assets during their term in office. Assemblywoman Kim also pointed out that "President Lee, during his tenure as Governor of Gyeonggi Province, restricted the promotion of public officials with multiple properties and actually implemented this policy." Minister Kim responded, "I will gather and review various opinions on whether to reflect this in policy and provide feedback afterward."
Criticism of former Vice Minister Lee Sangkyung also continued. Assemblyman Kim Jungjae referred to Lee’s inappropriate remarks and the controversy surrounding his spouse’s high-priced gap investment in an apartment, saying, "This is a classic case of 'if I do it, it’s romance; if others do it, it’s adultery.' Do you think the public’s anger has subsided just because he resigned in a hurry? Public sentiment is boiling over."
Previously, after the announcement of the October 15 real estate measures, former Vice Minister Lee appeared on a YouTube broadcast and said, "People are stressed because they are trying to buy a home now. If government policies bring prices down, they can buy then." This statement was criticized for ignoring the anxieties of those without homes and for being out of touch with reality, leading to a rapid cooling of public opinion. The controversy intensified when it was revealed that his spouse had purchased a 117-square-meter unit in 'Pangyo Prugio Granble' in Bundang, Seongnam, for 3.35 billion won last year, using a jeonse deposit of 1.48 billion won. Although former Vice Minister Lee issued an apology via a live broadcast on the Ministry of Land, Infrastructure and Transport’s YouTube channel, criticism continued over the format and content, and he ultimately tendered his resignation on the 24th.
Controversy Over Shifting Responsibility as Ministry Spokesperson Is Placed on Standby
As the controversy over former Vice Minister Lee grew, the spokesperson (Grade 1), who oversees public relations at the Ministry of Land, Infrastructure and Transport, was placed on standby, taking responsibility for Lee’s YouTube appearance and media response. Minister Kim stated in response to related questions, "There are also private circumstances involved in the personnel action, so it is difficult to report specific details here."
Assemblywoman Lee Yeonhee of the Democratic Party commented on the opposition’s criticism that "the vice minister caused the incident, so why is the spokesperson being placed on standby?" She explained, "Initially, the vice minister was supposed to hold a press conference in the pressroom, including a Q&A session, but the format was changed to a unilateral announcement via YouTube, which caused procedural issues. Considering responsibility for these procedural issues, placing the spokesperson on standby was an appropriate measure." Assemblyman Jeon Yonggi of the Democratic Party added, "If the public relations team failed to manage things properly, it is only right to hold them accountable. I express serious regret that this is being used to obstruct parliamentary proceedings."
Meanwhile, Minister Kim announced plans to address the housing shortage in the Seoul metropolitan area by expanding systematic organizations within the Ministry, such as a 'Housing Supply Headquarters.' He added, "We are preparing to establish a system within the Korea Land and Housing Corporation (LH) to carry out these tasks." Regarding property taxes, he expressed his personal view, stating, "I agree with increasing the real estate holding tax."
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