Lee Hyungil Apologizes for Gwacheon Apartment Controversy, Also Expresses Regret Over Real Estate Tax Reform Confusion (Comprehensive)

Confirmation Hearing for Deputy Prime Minister for Economic Affairs

Lee Hyungil, Deputy Prime Minister and Minister of Finance and Economy nominee, is delivering his opening remarks at the confirmation hearing held at the National Assembly on the 15th. 2026.09.15 Photo by Dongju Yoon

Lee Hyungil, nominee for Deputy Prime Minister and Minister of Finance and Economy, bowed his head on the 15th, expressing, "I apologize to the public for causing concern," in response to the controversy over his non-residence at an apartment in Gwacheon. He apologized for the confusion related to the amendment of the tax law that imposes disadvantages on single-homeowners who do not live in their homes, and stated that he would discuss with the National Assembly ways to broaden the exceptions for actual residency requirements.

At the confirmation hearing held by the Planning and Finance Committee at the National Assembly that day, Lee stated, "Regardless of the reason, I am sorry for the controversy over not living in the property and the aspects that failed to meet the public's expectations."

Lee and his spouse jointly purchased an apartment in Gwacheon, Gyeonggi Province, in February 2009 and have held it for 17 years, but actually resided there for only four months. This is viewed as inconsistent with the current administration's housing policy focused on actual residency, and the opposition parties have raised suspicions of ‘gap investment’ (buying a property with a tenant still under contract in place to benefit from rising prices).

Lee explained, "I have owned only one home all my life and held onto that apartment for a long period—I wanted to keep living there, but it was not possible due to work relocation." He continued, "Around January 2009, while I was living in Pyeongchon, I was notified to work at BH (the Blue House). Because back then I had to go to work before dawn, I decided to move closer to the workplace and found a rental in Gwacheon."

He added, "I chose Gwacheon, where the government complex is located, as my place of residence and, by around April, purchased a home there that fit my circumstances. However, since I had already secured another rental and was living there, I could not move into the purchased home."

Lee emphasized that the purchase was for actual residency at the time. He said, "The apartment back then was 22 pyeong (approximately 72.6 square meters) without an elevator or underground parking, so it was quite different from now. The area had many four-person households with elementary school children, and I bought it with the intention of living there."

He continued, "I did not have a registered address anywhere else, so if I had not lived there, I would have had no other place to stay. I can say with certainty that I actually resided there."

Regarding the allegations of speculation since the property was purchased with a tenant in place, Lee countered, "The purchase price was 420 million won, and the rental deposit (jeonse) was about 110 million won. I bought the apartment without any loans."

On the 15th, a confirmation hearing for Lee Hyungil, the nominee for Deputy Prime Minister and Minister of Finance and Economy, is being held at the National Assembly. 2026.09.15 Photo by Dongju Yoon

Lee apologized for the confusion surrounding the real estate tax system overhaul, stating, "While we did go through a process of gathering opinions, I regret not having considered matters more thoroughly." He emphasized, "I will uphold the principles of a residence-oriented housing culture, fair taxation, and protection for single-homeowners who actually reside in their homes."

Regarding the plan to expand the reasons recognized for exceptions to the residency requirement, he said, "We will discuss unavoidable circumstances for recognizing such exceptions in the enforcement decree with the National Assembly."

On macroeconomic policy direction, he expressed agreement with monetary authorities’ tightening stance, while highlighting the importance of a 'policy mix'—using fiscal measures to cushion the impact of interest rate hikes on vulnerable groups.

On tight monetary policy, Lee stated, "Due to the semiconductor boom, massive liquidity is flowing into the country via the current account surplus. I agree that preemptive and proper management is needed." As for household debt, he committed to maintaining a management-oriented approach, but noted the need for targeted support for genuine demand groups such as young people and newlyweds.

He further explained, "Recognizing that access to finance may be lower for youth and newlyweds, we gathered opinions at roundtables in July and August, and are taking steps to selectively ease regulations where necessary."

In response to concerns about conflicts of interest related to his family’s investment in exchange-traded funds (ETFs), Lee stated, "As I do not hold any individual stocks, there are no conflicts of interest."

Recently, as the stock market surged, Lee, his spouse, and their eldest daughter gained profits of 350 million won through ETF investments, which raised suspicions of conflict of interest because Lee, as Vice Minister of Strategy and Finance and an ex officio member of the National Pension Fund Management Committee, has had involvement in related financial policy matters.

While serving as vice minister, Lee has participated as an ex officio member of the National Pension Fund Management Committee, and in May, the committee raised the domestic stock target allocation from 14.9% to 20.8%.

Lee responded, "I can assure you with a clear conscience that this had absolutely nothing to do with any decisions made at the committee," explaining that the investment returns stemmed from broad macroeconomic trends, not from the committee’s decisions.

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