Blue House: President Lee Sets 1.77 Billion Won Mortgage, Waives Interest

The Blue House stated that the 1.77 billion won mortgage set during the sale of President Lee Jae-myung's apartment in Bundang is akin to a bank loan, despite the different parties involved in the transaction.

The Blue House also announced that the seller will not charge interest on the deferred payment from the buyer, indicating that the seller is acting as a bank but is choosing to forgo interest as a consideration for the buyer. Due to the interest-free nature of this arrangement, the Blue House acknowledged that it may be viewed as a form of 'gift' for tax purposes, but assured that it will be handled according to relevant regulations.

On the same day, the Blue House explained the ongoing controversy regarding the apartment sale through its YouTube channel, 'Fact Factory.'

Previously, President Lee sold the Bundang apartment for 290 million won, below market value, while setting a mortgage of 1.77 billion won against the property. This arrangement allowed the buyer to defer the final payment after the title transfer.

The broadcast, hosted by Deputy Spokesperson Ahn Gyu-ryeong, featured Han Moon-do, an adjunct professor at Myongji University, who actively clarified the controversy. There was initial confusion regarding his title, as he was first introduced as a professor at Yonsei University, but later identified as an adjunct professor at Myongji University in the broadcast. He has also been described in other media as a professor at Seoul Digital University and is known to have pro-government leanings.

Professor Han stated, "It appears that the president has shown consideration for the buyer," adding that the difference in the deferral period is not significant, being only three to four months rather than one to two years. He noted that if the buyer fails to pay the final amount on the due date, the interest amount is legally guaranteed and will be calculated as overdue interest.

Regarding allegations of 'gap investment,' he emphasized that the area is designated as a land transaction permission zone, requiring local government residency verification. If the buyer does not move in within six months after payment, they would incur a penalty of up to 10% of the apartment's price annually, making gap investment impossible.

Additionally, Professor Han explained that the president's decision to sell the property is in line with regulations allowing a homeowner to sell after ten years of ownership and five years of residence, stating, "Thus, there was no urgency to sell, and the president did not need to consider the buyer's situation."

Meanwhile, the Blue House clarified in a media notice the day before that the mortgage was established to secure the unpaid balance due at the end of October, stating, "The title transfer was made considering the buyer's circumstances, and the mortgage was transparently established based on a civil agreement between the parties involved."

The Blue House also emphasized that the president's residence is the couple's only home, where they have lived for 28 years, and that they sold it at a price lower than market value to demonstrate their commitment to normalizing the real estate market, foregoing potential profits from redevelopment.

In response to allegations of personal connections between the buyer and the president, the Blue House stated, "The sale was conducted through standard real estate practices," and dismissed claims of any personal relationships or special connections as unfounded.