[비즈한국] Lee Seong-hoon, President of the Korea Land and Housing Corporation (LH), who warned of a potential sharp drop in housing prices and advocated for stricter mortgage regulations, has been found to have sold an apartment he owned in Sejong City at a record-high price. The transaction took place after he faced controversy over owning multiple homes while serving as the Presidential Secretary for Land, Infrastructure, and Transport. Given that record-high transactions can serve as a benchmark for future market prices, controversy is expected to surround President Lee’s sale and his subsequent policy remarks.
According to BizHankook's investigation, in May, while serving as the Presidential Secretary for Land, Infrastructure, and Transport, Lee Seong-hoon signed a contract to sell an apartment he owned jointly with his spouse at Naritjae Village Complex 1 in Sejong City for 1.45 billion won. The apartment has a dedicated area of 112.59㎡ and was registered under the couple's names in July 2021. During the National Assembly Land, Infrastructure and Transport Committee audit on the 12th, President Lee stated that he had purchased the apartment through a presale for approximately 800 million won without a mortgage.
President Lee Seong-hoon’s sale set a new record for Naritjae Village Complex 1. The previous record for the complex was 1.3 billion won, set in April 2023 for a 29th-floor unit of the same size, which is 150 million won lower than this latest transaction. This floor plan was subsequently traded for 1.27 billion won in January 2024 (28th floor), 1.2 billion won in June (19th floor), and 1.12 billion won in February of this year (8th floor). With only 35 units of this size out of 343 households in the complex, there are few transaction records.
However, local real estate agents had mixed opinions on President Lee’s sale price. A representative from a nearby real estate agency stated, “It was sold lower than the market value,” adding, “It was a property that could have fetched 1.6 billion won because the floor was favorable.” Another agent from a different office also remarked, “Considering the high-floor view, it was a fair transaction price.” Conversely, an agent from a third office observed, “The market price at the time was in the low 1.3 billion won range, so it was sold at a relatively high price.”
The differing assessments are due to price variations based on floor level and view. While views from lower floors could be obstructed if buildings are constructed on the commercial land in front of the complex, it is noted that President Lee’s apartment was on a high floor, securing a lake view. An agent explained, “There is a world of difference between low-floor and high-floor units,” adding, “Due to the nature of residential-commercial complexes, prices can vary by hundreds of millions of won depending on the floor.”
President Lee Seong-hoon’s sale of his Sejong apartment is also linked to the controversy over his ownership of multiple homes. When he served as the Presidential Secretary, it was revealed that he and his spouse owned three homes, sparking public criticism. Following this, the couple signed the sales contract for the Sejong apartment in May, and in June, his spouse sold her 10% inherited stake in the Yeoksam Lucky Apartment in Gangnam-gu, Seoul, to a co-owner for 250 million won. The transfer of ownership for the Sejong apartment is currently pending.
President Lee recently argued that mortgage regulations should be tightened. At a press conference on the 30th of last month, he expressed the opinion that the 600 million won mortgage limit applied to homes under 1.5 billion won in the metropolitan area and regulated zones should be reduced further. His stance is that demand management through loan regulations is necessary as the supply of housing takes time. He also raised concerns regarding the 70% Loan-to-Value (LTV) ratio applied to first-time homebuyers.
He also mentioned the possibility of a sharp drop in housing prices. During the National Assembly audit on the 12th, when it was pointed out that tighter loan regulations could make it difficult for young people and newlyweds to buy homes, President Lee replied, “I said that because there is a possibility that housing prices could drop sharply in the future, and I took that into account.” He cited the expansion of LH housing supply and rising interest rates as factors for a decline in housing prices. He argued that if housing prices stabilize, people would not lose money even if they did not buy a house right away.
BizHankook reached out to LH to ask about the appropriateness of the sale price of President Lee’s Sejong apartment, but did not receive a response.