President Lee Jae-myung on the 25th approved the resignation of Vice Minister Lee Sang-gyeong of the Ministry of Land, Infrastructure and Transport, who faces allegations of real estate "gap investment (buying dwellings with jeonse tenants)."
The presidential office said in a notice to the press that "the dismissal plan for First Vice Minister Lee Sang-gyeong of the Ministry of Land, Infrastructure and Transport was approved this afternoon."
Appearing on a YouTube program on the 19th, the Vice Minister said, "You are under that kind of stress because you are trying to buy (a home) now, but if (housing prices) do not rise and stay the same, and if my income keeps coming in and that money piles up, you can buy then." But controversy erupted as it became known that Lee had increased assets through a gap-investment method. The Vice Minister won a allocation in 2017 for a 84㎡ unit at Pangyovalley Hoban Summit in Godeung-dong, Sujeong-gu, Seongnam, for 645.11 million won, then sold it for 1.145 billion won on June of this year, four days after President Lee was elected. Afterward, Lee signed a jeonse contract with the buyer and has been living in the apartment as a tenant. It is the so-called "owner-jeonse" method.
The Vice Minister's spouse also bought an apartment in Baekhyeon-dong, Bundang-gu, Seongnam, Gyeonggi Province, for 3.35 billion won in July last year, then signed a jeonse contract for 1.48 billion won in October of the same year before paying the balance. It is a typical gap investment, purchased with 1.87 billion won after subtracting the jeonse deposit. The apartment was traded for 4 billion won in June this year.