The presidential office announced on the 27th that President Lee Jae-myung has listed for sale an apartment in Bundang-gu, Seongnam, Gyeonggi Province, which he jointly owns with First Lady Kim Hye-kyung. The property has reportedly been put on the market for 2.9 billion won (29 billion KRW). Presidential spokesperson Kang Yoo-jung stated that although Lee had been a single-home owner holding the residence for living purposes, the decision is interpreted as an effort to personally demonstrate his commitment to normalizing the real estate market.
President Lee purchased the 164㎡ apartment in Yangji Village, Kumho Complex 1, in Bundang in 1998 for 360 million won under joint ownership with his wife and has held it for 29 years. The complex has recently been designated as a leading redevelopment zone among first-generation new towns, with transactions typically occurring in the 2.8–2.9 billion won range. Kang noted that the apartment was listed at a price slightly below both recent transaction values and current asking prices. Local real estate sources confirmed the listing at 2.9 billion won, explaining that while the price is somewhat lower than nearby listings of 3.1–3.2 billion won, it does not represent a loss sale. The property reportedly entered a provisional agreement shortly after being listed, with a formal contract expected soon.
A presidential office official said Lee likely concluded that continuing to hold the apartment would be less advantageous financially and appeared to believe that reinvesting the proceeds into ETFs or other financial assets would offer better economic returns. The apartment is currently occupied by a tenant. The official added that Lee reportedly views selling at what he considers a market peak and repurchasing property later at a lower price—after real estate market normalization and following his presidential term—as a more beneficial long-term strategy.
Posted by Freewhale98
2 Comments
1. Summary
President Lee Jae-myung showed his commitment to his own policy of transferring capital from real estate market to stock market by selling off his own home for 2.9 billion KRW and buying ETF with that money.
2. How is the related to the sub
(1) housing crisis: Can stock market be a solution to Korean housing crisis by pushing excess capital profitable stock market instead of real estate bubble?
3. My opinion
Lee Jae Myung’s policy against housing crisis can be summarized into three categories.
(1) Tax the landlords and home hoarders
(2) Public housing supply
(3) Profitable stock market
According to Lee, the core reason why Korea is experiencing housing crisis despite declining population is Chaebol’s manipulation of stock market. Chaebols suppressed the value of their own stock, making unfair stock market environment. This led to excess capital heading to housing, leading to real estate bubble and housing crisis.
So, he rushed various chaebol reform bills to make stock market investor-friendly. This led to skyrocketing KOSPI. This made the public become more interested in stock investment and his government is encouraging people to buy stocks instead of real estate speculation.
P.S. I’m not sure whether he is delusional or brave. Korean housing crisis has plagued and doomed successive governments. Betting his own fortune on solving housing issue is impressive to say the least.
I think that this kind of personal commitment to stated policies is really really laudable.
I don’t know how much it can mend public trust but there’s probably a lot of juice to squeeze given eg the popularity of Pepe Mujica and his austere living.