[Exclusive] 'Virtually Rent-Free' Governors and Mayors Living in Official Residences While Owning Homes in Seoul

[비즈한국] With six months remaining until the end of the 8th term of local government leaders, an investigation by Bizhankook has confirmed that five metropolitan governments in South Korea still operate official residences for their heads. These residences, which are either owned or leased by the local governments, are provided to the governors and mayors mostly rent-free. Coincidentally, all the local leaders who used these residences for free own their own homes in Seoul. Voices are rising to eradicate this outdated "third-world" culture of public residences that wastes taxpayer assets.

An investigation by Bizhankook has confirmed that five metropolitan governments in South Korea still operate official residences for their heads. The photo shows a view of the Seoul Partners House, which serves as the official residence for the Mayor of Seoul. Photo = Reporter Lim Jun-seon

According to data on official residences obtained by Bizhankook through information disclosure requests to each metropolitan government, out of 17 regional governments nationwide, five—Seoul, Daegu, Gangwon, South Jeolla (Jeonnam), and North Gyeongsang (Gyeongbuk)—are currently operating residences for their heads. Busan, North Chungcheong, South Chungcheong, North Jeolla (Jeonbuk), and South Gyeongsang abolished their official residences after the 8th local government term began in July 2022, while the others had no such residences even before then.

The residences currently in operation are buildings either owned or leased by the local governments. The Seoul Metropolitan Government has been using the 3rd floor (295㎡) of the Seoul Partners House, a support facility for SMEs in Yongsan-gu, as an official residence since May 2023. Daegu City uses an apartment in Nam-gu (137㎡) purchased for 896 million won in June 2022; Gangwon State uses a detached house in Chuncheon (formerly the residence of the Chief Prosecutor of Chuncheon, 386㎡) purchased for 85 million won in 2000; and North Gyeongsang Province has operated the 1st floor (175㎡) of the External Trade and Exchange Center behind the provincial government office in Andong as a residence since July 2022. South Jeolla Province has been leasing an apartment in Muan-gun (123㎡) with a jeonse deposit of 320 million won since 2018.

However, four out of these five residences are effectively provided rent-free. North Gyeongsang Province is the only one among the five that charges a usage fee. It is understood that Governor Lee Cheol-woo signed a lease agreement in July 2022 and has been paying a monthly usage fee of 1.2 million won. On the other hand, Seoul Mayor Oh Se-hoon, former Daegu Mayor Hong Joon-pyo, Gangwon Governor Kim Jin-tae, and South Jeolla Governor Kim Yung-rok do not pay any usage fees for their official residences. However, all five governors and mayors pay for the utility costs incurred at their respective residences. In the case of the Daegu mayor's residence, it has remained vacant since former Mayor Hong resigned last April, and even the maintenance costs are currently being covered by the city budget.

Coincidentally, the governors and mayors who used these residences for free all own homes in Seoul. According to the property disclosures for high-ranking officials released last March, Seoul Mayor Oh Se-hoon and his spouse own a high-end multi-family house (194.24㎡) in Gangnam-gu, Seoul, valued at 2.4 billion won. This property is currently leased out with a deposit of 1.3 billion won. Gangwon Governor Kim Jin-tae and his spouse own a 2.4 billion won apartment (Sunkyung Apartment, 128㎡) in Gangnam-gu, Seoul, while South Jeolla Governor Kim Yung-rok and his spouse own a 1.7 billion won apartment (Park Tower, 100㎡) in Yongsan-gu, Seoul. Former Daegu Mayor Hong Joon-pyo and his spouse owned a 2.6 billion won apartment (Asia Seonsuchon Apartment, 151㎡) in Songpa-gu, Seoul. Housing prices are based on the reported value of high-ranking officials' assets.

The Ministry of the Interior and Safety recommends the abolition of official residences for local government heads. In October 2010, the ministry issued the "Plan for Improving the Operation of Official Residences for Local Government Heads," recommending their abolition due to budget waste and low utilization. As a result, most local governments abolished them; the number of such residences dropped from 173 in 1998 to 19 by December 2021. In April 2022, during the Yoon Suk-yeol administration, the ministry sent an official letter to local governments again recommending the abolition of these residences and requiring users to bear the operating costs of official residences for their staff.

Why are these residences still in operation? A Seoul City official explained, "The former apartment residence of the mayor (which was leased) caused significant distress to nearby residents and merchants due to protests. We considered both the damage to residents from protests and the need for a swift response to disasters." A Gangwon State official added, "We are maintaining the residence near the government building to increase the speed of disaster and safety responses." A South Jeolla Province official said, "It is realistically difficult for the governor to commute (from his own home)," while a Daegu City official stated, "We operated the residence to solve housing problems for public officials coming from outside the region. We are currently reviewing the abolition of the mayor's residence."