Hong Ji-sun, the nominee for Minister of Land, Infrastructure and Transport, clarified that her purchase of an apartment in Sindorim, Seoul, was made for actual residence purposes ahead of the expiration of her lease. She explained that with nearby rental prices exceeding 900 million won, she decided it was better to take out a loan and buy a home priced around 1 billion won.
During a confirmation hearing at the National Assembly on September 16, Hong stated, "The most challenging aspect of living in a rental was having to move every 2 to 4 years not by choice, but due to circumstances." She provided this context to explain her decision to buy a home.
Democratic Party lawmaker Moon Jeong-bok challenged the notion that Hong's purchase of the Sindorim apartment last year was a speculative investment aimed at capital gains. Moon argued that plans for the GTX-B line had been in motion long before Hong's purchase, suggesting it was unlikely she intended to profit from the real estate market. He requested that Hong explain the circumstances surrounding her long-term rental before buying a home.
Hong responded, "Moving to a new rental does not increase the deposit; it remains the same, but moving costs and brokerage fees continue to accumulate." She noted that the expenses from moving multiple times can add up significantly.
She further explained that when her lease renewal was approaching, the landlord indicated plans to sell the property, prompting her to look for another rental. At that time, rental prices in the area had surpassed 900 million won, making it necessary to take out a rental loan regardless of whether she moved. Thus, she opted to take out a larger loan to purchase a home.
Regarding the increase in property values since her purchase, Hong emphasized that her intention was not to profit from capital gains. She acknowledged that while property prices have risen since her acquisition, this was due to market conditions.
Last year, Hong purchased the apartment in Sindorim-dong, Guro-gu, Seoul, co-owned with her spouse for 1.005 billion won, and its current market value has surged to 1.4 billion won. Prior to the hearing, Hong's team stated that the apartment was bought for actual residence purposes, and she continues to live there.
* This article has been translated by AI.
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