First Vice Minister of Land, Infrastructure and Transport Lee Sang-kyung apologized Oct. 23, saying he failed to fully appreciate the struggles of people aspiring to own a home. His apology came amid criticism that he profited billions of won through "gap investment," buying property with tenants' deposits while leading the government's Oct. 15 housing measures restricting such practices.

Lee's wife purchased a 40-pyeong (about 132 square meters) apartment in Baekhyeon-dong, Bundang District, Seongnam, Gyeonggi Province, for 3.35 billion won in July last year. Three months later, she leased the apartment with a key money deposit of 1.48 billion won. Its market value has since risen to about 4 billion won, resulting in a profit of more than 600 million won from the deposit-based investment.

Lee said the property was bought for residence but rented out because their previous home had not sold, arguing it differed from gap investment. Critics maintained that, in practice, there was little distinction.

The controversy intensified after Lee told a YouTube channel on Oct. 19 that stress comes from trying to buy now, and opportunities will arise once the market stabilizes and incomes increase. His remarks were viewed as hypocritical because he bought an apartment using a tenant's deposit while enforcing policies to restrict the same practice. Critics argued he profited from the approach his ministry aimed to curb, effectively portraying ordinary buyers who followed similar paths as wrongdoers.

Even within the ruling Democratic Party, Lee's comments and explanations sparked criticism. On Oct. 22, Supreme Council member Han Jun-ho apologized on his behalf, expressing regret over the vice minister's remarks that caused public concern. Rep. Park Jie-won also called for his resignation on Oct. 23, saying, "How can the vice minister in charge of housing policy, who owns an apartment himself, make remarks that rub salt in the wounds of ordinary citizens?"

Lee is responsible for the Oct. 15 real estate measures that placed all of Seoul and 12 areas in Gyeonggi Province under "triple regulations." He is also in charge of upcoming housing initiatives. With limited policy tools amid land shortages and excess liquidity, senior officials' credibility and integrity are crucial to policy success. Having lost trust even within the ruling party due to careless remarks and self-serving explanations, Lee may need to step down to restore confidence in housing policy.

Vice land minister faces criticism over housing policy hypocrisy