Lee's mortgage sparks clash: Ruling party calls it a normal transaction, opposition says rules and loopholes were both made

[Financial News] President Lee Jae Myung sold his apartment in Bundang for 2.9 billion won and set a mortgage of 1.77 billion won. Critics say the move was intended to secure the full market price by not missing the deadline to inherit reconstruction association membership rights later this month. In response, the Democratic Party of Korea stressed that it was a normal transaction, while the People Power Party said he had bypassed lending regulations that his own government had tightened.
In a written briefing on the 21st, DPK floor spokesperson Lee Joo-hee said, "Even though President Lee had no obligation to sell as a one-home owner, he sold his home below market value for 2.9 billion won and became a homeless homeowner," adding that he "personally showed the public his commitment to implementing real estate normalization policies."
Lee also pushed back against the opposition's claim that the mortgage was used to sidestep lending rules. She said, "The mortgage arrangement the People Power Party is criticizing is a lawful and common practice used to transfer ownership before the final payment and secure any unpaid balance," and added, "The purpose of lending regulations is to block speculative demand and stabilize home prices. They are not meant to prohibit sellers from allowing a delay in final payment."
On the claim that he rushed the sale to transfer reconstruction association membership rights and get the full price, spokesperson Park Hae-cheol said, "This was not a transaction that generated capital gains. He voluntarily gave up his reconstruction subscription rights," emphasizing that Lee had relinquished his membership rights.
The People Power Party viewed Lee as having tightened lending rules while using a mortgage to avoid them himself.
Party leader Jang Dong-hyuk said, "He said easing loans would fuel speculation, so he blocked everything. He said jeonse should disappear because it is a form of predatory finance. He said people should be punished if they buy a house with business loans. He said corporate housing loans should not be allowed either. He made the rules, and he made the loopholes too." He then asked whether Lee was "engaging in self-criticism" after the president condemned illegal real estate windfalls at the State Council meeting that day.
Floor leader Jeong Jeom-sik said, "He cracked down on loans while calling gap investment speculation, but he sold his home on credit himself," adding, "He blocked loans for people trying to buy their own home, yet as president he used private financing to bypass lending rules and made tens of millions of won in profit through a loophole."
Independent lawmaker Han Dong-hoon also cited Lee's remarks on the need for tax audits of leveraged real estate transactions and urged, "Following the Lee Jae Myung administration's policy, the National Tax Service should immediately audit Lee Jae Myung, the leveraged seller."
[email protected] Kim Yoon-ho Reporter