Lee Sang-kyeong, the first vice minister of land, infrastructure and transport, apologized publicly on Oct. 23 for a real estate purchase that reignited debate over speculative investing. In July last year, his wife bought an apartment in Bundang, Seongnam, for 3.35 billion won ($2.3 million) under a jeonse lease, or a real estate policy with a negative correlation between deposit and rent, drawing criticism for engaging in a so-called "gap investment."

"As a senior official responsible for housing policy, I sincerely apologize for causing public disappointment," Lee said during the video address.

The apology came days after Lee's appearance on a YouTube program, in which he said, "It's fine to buy a house once the market stabilizes under government policy." His remarks angered the public because the government's Oct. 15 measures had just tightened loan rules and banned gap investing to curb housing speculation in the Seoul metropolitan area. Though his purchase was made before his appointment to public office, many viewed his earlier profit as deeply inappropriate for an official overseeing housing regulation. Democratic Party (DP) lawmaker Park Ji-won called his comments "insulting to the public" and urged him to resign.

Public frustration grew after another DP lawmaker, Bok Ki-wang, said, "An apartment worth about 1.5 billion won is what ordinary people buy." He suggested that the Oct. 15 housing measures had not affected "ordinary homes" because loans for properties under that threshold were left untouched. People Power Party (PPP) lawmaker Kim Jae-seop countered, "If I can't afford a home, does that make me untouchable by DP standards?"

The Oct. 15 measures were an emergency step to cool soaring home prices, but they have also made mortgages and relocation more difficult. In such circumstances, policymakers should explain why these restrictions are necessary and exercise caution with public remarks, as tone-deaf comments and poor political judgment have undermined the credibility of housing policy.

President Lee Jae Myung cannot treat this as a personal scandal. He must send a clear message across the civil service that behavior violating public expectations will not be tolerated. A senior housing official who has lost public trust cannot effectively lead housing policy. With the Bank of Korea freezing the base rate for a third straight time and housing prices continuing to rise, public anxiety and resentment are deepening. To restore confidence in policy, the vice minister's resignation may be unavoidable. An apology alone will not suffice.

At the same time, political overreach on housing must be avoided. The PPP has branded the current housing policy as "a total deprivation of homes for young and working-class people," and 15 Seoul district mayors from the PPP have demanded the lifting of land transaction permit zones. The opposition must move beyond criticism and propose practical alternatives that support market stability.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.