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President Lee Jae-myung speaks at a meeting on regional, essential, and public healthcare held at the Blue House on July 22 / Photo by Yonhap News Agency

As criticisms expanded over President Lee Jae-myung's method of selling his Bundang apartment, the Blue House entered an all-out "explanation mode."

The response stems from concerns that if a "double standard" frame takes root—charging that "while citizens' mortgage loans were blocked, the president bypassed regulations to sell his home"—it could undermine public trust in government housing policies. With the "National Public Forum on Real Estate Policy" and subsequent policy revisions scheduled for July 23, the decision also appears driven by judgment that the president's personal real estate matter could burden policy momentum.

On July 22, the Blue House emphasized through its online policy promotion program "Fact Mill" that the transaction was legal and standard, explaining the circumstances behind the buyer's inability to pay the full balance at once and the reason for establishing a collateral mortgage.

President Lee recently sold his apartment in Bundang-gu, Seongnam, Gyeonggi Province, for 2.9 billion KRW while establishing a 1.77-billion-KRW collateral mortgage for a buyer lacking sufficient funds. At the same time, it was disclosed that he decided not to collect interest out of consideration for the buyer's situation. Regarding the deal, critics argued that while the government raised borrowing hurdles for the public, the president virtually extended private financing to enable the purchase of a high-priced apartment. Observers pointed out that this contradicts the government policy stance that those lacking financial capacity should refrain from buying homes.

Appearing on "Fact Mill" that day, Han Moon-do, a professor of real estate at Seoul Digital University, explained that establishing a collateral mortgage is "a very common legal procedure." He assessed that President Lee demonstrated "a strong commitment to real estate policy," noting that as a single-home owner-occupant, Lee had no obligation to sell and had even forfeited potential additional profits as a member of the reconstruction association. He stressed that establishing the collateral mortgage was also a measure to accommodate a buyer facing difficulties raising the balance.

The Blue House released a statement containing similar details the previous evening as well. Taking to explanations two days in a row is interpreted as a response to the judgment that the spread of controversy was growing serious.

Indeed, criticisms continued not only in political circles but also across real estate communities, with users commenting that "it is a transaction only possible for a president residing in an official residence or wealthy individuals," and "if the price had been lowered, it could have been sold through normal means."

However, whether the Blue House's active explanations will quickly quiet the controversy remains uncertain. Real estate remains a highly sensitive public issue, and the focus of the dispute is shifting from the legality of the transaction to a "fairness issue" relative to citizens facing difficulties buying homes due to loan regulations.

                                                                                                            Hong Seon-mi