Lee on 1.77 Billion Won Mortgage Controversy: Lee Eogwon Says, "Not Aware of Transaction Details"

Report to the National Assembly’s Political Affairs Committee on July 29
Avoids Direct Answer on Calls to Ease Household Loan Regulations
"Decline in Supply Due to Reduced Construction Starts 3 to 4 Years Ago"

Lee Eogwon, Chairman of the Financial Services Commission, stated on July 29 regarding the controversy over the legality surrounding President Lee Jaemyung’s apartment sale in Bundang, Seongnam-si, Gyeonggi Province, and the setting of a mortgage right worth 1.77 billion won, "It appears to be a transaction agreed upon between private individuals, but I am not aware of the specific details or which part is at issue."

Lee Eokwon, Chairman of the Financial Services Commission, is reporting on work at the full meeting of the Political Affairs Committee held at the National Assembly on July 29, 2026. Photo by Kim Hyunmin

During a work report at the National Assembly's Political Affairs Committee that day, Chairman Lee responded in this way to questions suggesting that President Lee's apartment sale and the setting of the mortgage right might constitute an illegal act. President Lee recently sold his Bundang apartment for 2.9 billion won and, in the process, set a mortgage right with a maximum claim amount of 1.77 billion won for the buyer.

In response to a question from Park Juntae, a People Power Party lawmaker, who asked, "The person who bought President Lee's apartment paid only the deposit; can you answer whether the transaction was legal, illegal, or an evasion of the law?" Chairman Lee said, "As stated by the Office of the President, it was a private transaction, and I am not aware of the details. I understand that the Office of the President said it was conducted in a lawful, transparent, and open manner."

Earlier, the Office of the President explained, "The details on the registry are due to the circumstances of the buyer," adding, "President Lee completed the sale of his residence at 2.9 billion won, which is lower than the recent market price. While he was not obligated to sell as a single-home owner, this action demonstrates his resolve to implement real estate normalization policy." Lim Kigeun, the policy chief at the Office for Government Policy Coordination, also attended the full National Assembly Political Affairs Committee meeting the previous day, stating, "There is nothing clearly indicating any circumstances suspected of being related to illegal acts."

When asked by Park Sunghoon, a People Power Party lawmaker, "Even now, do you have any plans to promise or review an easing of the overall household loan cap, or to propose to other relevant ministries the relaxation of regulations for redevelopment and reconstruction supply?" Chairman Lee did not give a direct answer. However, Chairman Lee explained, "According to statistics, the number of construction starts in the Seoul metropolitan area, usually around 200,000 units, sharply dropped to about 100,000 units in 2022-2023, which is now, three years later, appearing as a decrease in supply."

Chairman Lee also stated that he would consider a "targeted support" policy so that excessive lending regulations do not harm actual homebuyers and young people.

When asked, "To properly design the household lending regulation policy, it is necessary to separate speculative credit loans from loans for actual demand and to establish the criteria for exceptions to the overall cap on lending. When will this be announced?" Chairman Lee replied, "We will pay extra attention to ensure that the process of managing household debt totals does not result in harm to actual homebuyers."

He added, "If household loan regulations are eased, there is a risk that it could further stimulate the real estate market. We will strive to find a balance that manages total household debt without causing harm to ordinary people."

When asked, "For the approximately 14,000 households of ordinary citizens preparing to move in next month, are there immediate plans to present guidelines to all financial sectors?" Chairman Lee responded, "Just yesterday, I met with executive vice presidents of lending at KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks to discuss this, and I will prepare measures to ensure that no problems arise in related areas."

This content was produced with the assistance of AI translation services.