Police Refer Lee Hyehoon for Prosecution Over 'Fraudulent Apartment Subscription,' Seek Preservation Order for Banpo Apartment

Ban on Sale, Transfer or Other Disposal of Apartment
4 Billion Won in Capital Gains Just Over a Year After Winning Apartment Subscription

Lee Hyehoon, nominee for minister of the Ministry of Planning and Budget, answers lawmakers' questions during a confirmation hearing before the National Assembly's Finance and Economy Planning Committee on Jan. 23. Photo by Kim Hyunmin

Police have referred Lee Hyehoon, former nominee for Minister of Planning and Budget, for prosecution over allegations including fraudulently obtaining an apartment subscription.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency said on Nov. 13 that it had referred Lee to the Prosecution Office on suspicion of fraud and obstruction of business, among other charges.

Police also applied for a pre-indictment preservation order prohibiting the disposal of the One Pentas apartment in Banpo-dong, Seocho-gu, Seoul, which Lee's family is suspected of obtaining through fraudulent means, and notified the Ministry of Land, Infrastructure and Transport of the investigation results.

If the court grants the application for a pre-indictment preservation order, Lee's family will be unable to sell, transfer or otherwise dispose of the apartment at their discretion until a final judgment is handed down.

Lee is suspected of inflating her housing subscription score and winning an apartment in 2024 by listing her eldest son, who was married and had established a separate household, as a dependent family member. She is reportedly said to have made a capital gain of around 4 billion won in market value just over a year after winning the subscription.

Lee was nominated for Minister of Planning and Budget in December 2025, but her nomination was withdrawn after allegations of fraudulent apartment subscriptions and abuse of power emerged during her confirmation hearing.

After civic groups and others filed complaints, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency took over the case from the Bangbae Police Station and conducted an investigation, including a search of her home.

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