Lee So-young, who called a non-owner-occupied single home “speculative,” faces opposition claim that its value rose by 700 million won over 10 years

[Financial News] The People Power Party on the 9th raised suspicions of gap investment, alleging that Lee So-young, nominee for minister of the Ministry of SMEs and Startups, rented out a Seoul apartment for an extended period and recorded a paper gain of approximately 700 million won over 10 years. The party argued that Lee, who has defined long-term ownership of a single non-owner-occupied home as speculative gap investment, herself held a real estate asset in a similar manner. Lee’s side rejected the allegation, saying she bought the apartment as her newlywed home and actually lived there for about five years.
An analysis by Choi Su-jin, a People Power Party lawmaker on the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee, of Lee’s property disclosures and other records found that Lee bought an apartment in Hongje-dong, Seodaemun District, Seoul, for 490 million won in February 2016. At the time, a loan with a maximum secured claim of 180 million won had been registered against the apartment.
According to the Seoul Real Estate Information Plaza, an apartment of the same size in the same complex traded for 1.19 billion won in July. Compared with Lee’s purchase price, that represents a 700 million won increase over 10 years. A lease contract for the apartment was also signed last month with a deposit of 640 million won, 150 million won more than Lee’s purchase price.
Choi claimed that Lee’s actual equity investment was estimated at approximately 350 million won, characterizing the rental arrangement as gap investment. Choi particularly criticized Lee because, while serving as a Democratic Party lawmaker, she had defined long-term ownership of a single non-owner-occupied home as speculative gap investment and advocated strengthening the related tax burden.
Choi also raised the issue of public housing in Gwacheon. She argued that when the government was pursuing public housing for young people and newlywed couples in Gwacheon, Gyeonggi Province, which had been Lee’s constituency, Lee opposed the plan. According to Choi, this was inconsistent with the government and ruling party’s policy of protecting actual housing demand among people without homes.
Choi stated, "At the confirmation hearing, Lee must clearly answer whether the principles of protecting actual housing demand among people without homes and regulating non-owner-occupied homes, which the government and ruling party have routinely emphasized, apply equally to a ministerial nominee."
Lee’s side denied the suspicions of gap investment. An official from the Ministry of SMEs and Startups’ confirmation hearing preparation team explained, "The nominee acquired the Hongje-dong apartment as her newlywed home in December 2015 and actually lived there for about five years. She moved her residence to Uiwang in March 2020 after running in the 21st National Assembly election and has lived there ever since."
Lee’s side also rejected as inaccurate the claim that she opposed the supply of public housing in Gwacheon. It explained that her position in 2020 was not to reduce the number of housing units supplied, but to adjust their locations while maintaining the same number of households. It also countered that Lee had supported relocating the racetrack in 2026 and was instead criticized locally for doing so.

[email protected] Kim Kyung-min Reporter