SMEs Minister Nominee So-Young Lee: "Apartment Purchased for Self-Occupancy... No Capital Gains Realized"

On-Paper Profit on Hongje-dong Apartment Rises by 700 Million Won Over 10 Years

Lee Purchased in 2016, Lived There for Four Years

"Undeniably Purchased for Own Residence, Regretful About 'Gap Investment' Claim"

"No Sale or Realization

So-Young Lee, nominee for Minister of SMEs and Startups, has addressed allegations that she earned an accounting profit of 700 million won over ten years by renting out a non-residential apartment in Seoul on jeonse (long-term deposit lease), stating, "It was acquired for self-occupancy, and I have not realized any capital gains."

So-Young Lee, nominee for Minister of SMEs and Startups, is arriving at the hearing preparation office set up at the Small and Medium Business Technology Information Promotion Agency in Yeouido, Seoul on August 31, 2026. Photo by Jinhyung Kang

According to an analysis by Choi Sujin, a lawmaker from the People Power Party, on September 9, based on Lee’s asset declaration, she purchased an apartment in Hongje-dong, Seodaemun-gu, Seoul, in February 2016 for 490 million won, taking out a loan with a maximum secured amount of 180 million won.

An apartment of the same size in the Hongje-dong complex owned by Lee was actually transacted for 1.19 billion won in July this year. As of August 26, the jeonse contract was signed at 640 million won. Considering that the maximum mortgage amount is typically set at 120–130% of the actual loan, she is estimated to have purchased the apartment with approximately 350 million won in actual funds. It is presumed that she has gained about 700 million won in accounting profit over the ten years since purchase.

Lee has not lived in the Hongje-dong apartment for over six years since 2020. Critics point out that the government’s real estate policy stance is inconsistent, as the Democratic Party has previously defined long-term non-residential ownership of a single home as "gap investing."

In response, Lee explained that she lived in the apartment for four years and moved due to running for office. She stated that she resided there from February 2016, immediately after registration, until February 2020, and that the mortgage loan was fully repaid in 2019.

Her personnel hearing preparation team emphasized, "The 180 million won collateral that was established at the time of acquisition was security for the mortgage loan. This is a different concept from so-called 'gap investing,' which refers to purchasing a house by utilizing a tenant’s jeonse deposit. Since acquiring the property, Lee has maintained single-home ownership for over ten years and has not acquired any additional properties or engaged in repeated real estate transactions."

Lee also noted that the "700 million won increase over ten years" is an accounting gain that could be misunderstood as actual capital gains. Her team added, "Fluctuations in the appraised value in asset declarations might be misconstrued as actual capital gains. The apartment has neither been sold nor have any capital gains been realized."

Separately, Lee also denied the claim from Assemblyman Choi that she opposed the government’s plans in 2020 and 2026 to supply public housing for youth and newlyweds in Gwacheon, Gyeonggi Province.

Her team explained, "While Lee did oppose the use of the Government Complex Gwacheon site in 2020, she later accepted and pursued an alternative plan to supply 4,300 units on a substitute site, which is 300 more than the original government proposal, excluding the government complex site. As for the 2026 housing supply plan for the Gwacheon Racecourse area, Lee has publicly expressed support based on the need to relocate the racecourse and to improve residents’ living conditions."

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