Vice Minister Lee Sang-kyung of Land, Infrastructure, and Transport, who faced controversy for purchasing a high-priced apartment through "gap investment" (buying a house with a tenant paying a deposit), has offered to resign.

'Double Standard Gap Investment Controversy' Vice Minister Lee of Land, Infrastructure, and Transport announces public apology. Yonhap News. 

The Ministry of Land, Infrastructure, and Transport announced on the 24th through a press release, "We inform you that Vice Minister Lee has offered to resign."

It is understood that Vice Minister Lee informed Minister Kim Yoon-deok of Land, Infrastructure, and Transport of his intention to step down from his position around 8 p.m. today. The decision on whether to accept Vice Minister Lee's resignation rests with President Lee Jae-myung.

President Lee is reportedly planning to accept the resignation.

A source from the ruling party stated, "Although the exact timing is unknown, I believe the resignation will be accepted over the weekend as the administrative procedures proceed."

Vice Minister Lee had previously appeared on a YouTube channel to explain the government's "October 15th Real Estate Measures," which designated all of Seoul and 12 locations in Gyeonggi Province as regulated areas (speculative overheated zones and adjustment target areas) and land transaction permit zones.

In response to criticism that the October 15th measures would harm genuine homebuyers, he said, "You are feeling stressed because you want to buy now," and "You can buy when the market stabilizes and housing prices fall."

This sparked widespread criticism and backlash on real estate communities and elsewhere, with accusations that he failed to understand the anxieties of those who had become "sudden poor" by trusting the government's promise to control housing prices.

Adding to the criticism, when allegations arose that Vice Minister Lee had purchased a high-priced apartment worth over 3 billion won in Bundang-gu, Seongnam-si, Gyeonggi Province, through "gap investment," public opinion grew that his actions were inappropriate for a high-ranking official in the ministry overseeing real estate policy.

The October 15th measures primarily aimed to curb gap investment by strengthening loan regulations through the designation of extensive regulated areas and by imposing a two-year mandatory residency period for those purchasing homes in designated land transaction permit zones.

It was revealed that Vice Minister Lee's spouse signed a contract in July of last year to purchase a 117㎡ apartment in Pangyo Prugio Grandble, Baekhyeon-dong, Bundang-gu, Seongnam-si, Gyeonggi Province, for 3.35 billion won and then entered into a lease agreement for 1.48 billion won three months later.

Vice Minister Lee explained that the apartment was purchased for self-residency and that his previous home had not sold on time, so he initially rented it out with the intention of moving in after the lease ended. However, public criticism of "double standards" intensified, citing the subsequent significant rise in the price of the Baekhyeon-dong apartment.

As public opinion continued to deteriorate, Vice Minister Lee issued a public apology via video on the Ministry of Land, Infrastructure, and Transport's YouTube channel the previous day, stating, "During the YouTube broadcast interview to explain government policies in more detail to the public, I failed to fully consider the perspectives of citizens working diligently with the dream of homeownership."

He added, "I humbly accept that while my spouse purchased the apartment for self-residency, it fell far short of the public's expectations," and "I will reflect on myself through this incident."

However, negative assessments continued regarding the content and format of the apology. The opposition People Power Party also launched a daily offensive, pointing to high-ranking officials in the current government, including Vice Minister Lee, who possess significant real estate assets.

Despite the apology, public criticism did not subside, and the issue was expected to be a major focus of public discussion during the National Assembly's Land, Infrastructure, and Transport Committee's comprehensive audit of the Ministry of Land, Infrastructure, and Transport scheduled for the 29th.

Vice Minister Lee, who was also known as President Lee Jae-myung's "real estate strategist," is understood to have decided to resign considering that his remarks during the YouTube appearance had significantly worsened public opinion on the government's real estate policies and could further burden future governance related to these issues.

Yonhap News