The Ministry of Land, Infrastructure and Transport is expected to first watch the National Assembly confirmation hearing process for Minister of Planning and Budget nominee Lee Hye-hoon over allegations of "fraudulent subscription" and then decide follow-up measures. After reviewing the questions and explanations at Lee's hearing, it appears the ministry will calibrate the scope of fact-finding and the level of any probe.
In July 2024, Lee applied for a 137-square-meter unit at "Raemian One Pentas" in Banpo-dong, Seocho-gu, Seoul, and won with 74 points under the scoring system. The apartment was offered at 3.6 billion won, but its current market price has risen to 9 billion won, and it has been called a "lottery subscription."
In the process, Lee is suspected of having increased the number of dependents by keeping the eldest son, who was married at the time, listed as single and grouping him in the same household. The opposition says, "Even though Lee's eldest son married in Dec. 2023 and was living in a jeonse rental in Yongsan-gu, Seoul, he delayed filing the marriage registration and change of address and remained in the parents' household."
Lee's 74 points reportedly came from the full 32 points for the period without owning a home and the full 17 points for the savings subscription period, plus 25 points for a spouse and three sons. Some analyses say that without counting the eldest son as an unmarried dependent, it would have been virtually impossible to win, fueling strong criticism that the fairness of subscriptions for high-priced Gangnam apartments was undermined.
In response, Lee has said, "There was nothing illegal or improper," adding, "I will explain the details at the hearing."
The Ministry of Land, Infrastructure and Transport (MOLIT) is said to hold the position that it will "first watch the questions raised and the explanation process at the National Assembly confirmation hearing, then make a comprehensive judgment on the level and method of fact-checking and the need for follow-up measures."
Depending on Lee's explanation and whether additional allegations arise, the Ministry of Land, Infrastructure and Transport (MOLIT) is expected to decide whether to launch a separate investigation or take administrative and institutional measures.
Meanwhile, the current Housing Act stipulates that if dwellings are obtained by falsehoods or other improper means, the supply contract is canceled and a sentence of up to three years in prison or a fine of up to 30 million won may be imposed. Therefore, if a legal violation is confirmed, Lee's winning bid could be canceled and the case could be referred for investigation, potentially leading to criminal punishment.