The People Power Party on the 31st criticized that Financial Supervisory Service Governor Lee Chan-jin could reap more than 3 billion won in capital gains from a road lot and two commercial units he owns if redevelopment goes ahead, and called for his resignation. Additional allegations were raised that Lee once ran in an election for a building representative at a Gangnam reconstruction apartment complex and even engaged in litigation.
Choi Eun-seok, the People Power Party's chief deputy spokesperson, issued a commentary that day, saying, "Recent appraisal results for the road lot and two commercial units owned by Lee showed that he could reap more than 3 billion won in capital gains if redevelopment goes ahead."
According to Spokesperson Choi, Lee's wife acquired a road lot in Bongcheon-dong, Gwanak-gu, Seoul, in 2009 for 92 million won through a court auction.
Spokesperson Choi said, "If redevelopment is pursued, compensation could reach up to 2.4 billion won, and even if it falls through, it is assessed as a 'prime parcel' with no risk of loss because the local government can be compelled to purchase it," adding, "Although it is a road between residential areas, it is registered as 'land,' allowing for much higher compensation than a regular road."
He also said, "The Geumho-dong commercial unit was likewise acquired through a court auction, and if redevelopment is pursued, two pre-sale rights could be secured. The officetel commercial unit in Jung-gu, Seoul, was also purchased by his wife at a court auction for 150 million won and then gifted to Lee. Both commercial units have now more than tripled from their purchase prices," adding, "Lee and his wife are, literally, worthy of being called 'masters of court auctions.'"
Spokesperson Choi noted, "They have made full use of expertise from a legal background to speculate in real estate, precisely exploiting loopholes in real estate transactions," adding, "They were shrewd at swelling their own wealth but thoroughly inept at protecting the public's housing stability."
He went on, "The Financial Supervisory Service is an institution that supervises financial institutions, protects financial consumers, and safeguards stability and trust in the financial market, but the governor's boundless greed and allegations of real estate speculation are completely destroying the institution's ethics and fairness," urging, "He must take responsibility immediately and step down."
There were also media reports that two years ago Lee ran in an election for a building representative at a complex where he owned two apartments and, enlisting a fellow lawyer, waged a legal battle.
In response, former People Power Party leader Han Dong-hoon said on social media, "The media is putting forward the common-sense guess that the reason (for the litigation) was a fight over reconstruction interests. It is unlikely that a lawyer from the Lawyers for a Democratic Society would try to become a building representative at a Gangnam apartment slated for reconstruction for the sake of honor."
He added, "People do not trust real estate policy led by someone like this," urging him to resign immediately.