Lee Hyung-il, the Deputy Prime Minister and Minister of Economy nominee, clarified that he is not residing in his apartment in Gwacheon, Gyeonggi Province, because it is currently undergoing reconstruction.
On his way to the Financial Services Commission office in Jung-gu, Seoul, on September 3, Lee addressed the controversy surrounding his apartment ownership and non-residency, stating, "Our firm principle is to establish a housing market centered on actual residence."
As the government pushes for a reform of the real estate tax system that differentiates tax burdens for homeowners based on their residency status, concerns have been raised about how Lee's living situation aligns with this policy direction. He explained that his case involves special circumstances due to the ongoing reconstruction.
According to public asset declarations, Lee and his spouse jointly own the apartment in Gwacheon, which reportedly began its reconstruction relocation process in 2025.
However, it is noted that Lee has been living in a different house on a lease since 2021, raising questions about the timeline of his residency and the purchase of the apartment, which may become points of contention during the confirmation hearing.
Regarding the timing and circumstances of the apartment purchase, Lee stated, "I bought it quite a while ago, and I will provide detailed answers during the hearing."
On the topic of real estate tax reform, he emphasized that the government's revised proposal was developed in consultation with the ruling party.
Lee commented on the Democratic Party's proposal to delay the abolition of the long-term holding special deduction and to increase the basic deduction for non-resident homeowners to 140 million won, saying, "The revised proposal that passed the Cabinet meeting was prepared through discussions incorporating the supplementary ideas presented by the Democratic Party."
He added, "We will continue to communicate and collaborate moving forward," leaving the door open for further discussions between the government and the ruling party.
* This article has been translated by AI.
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