No Interest on 1.7 Billion Won Mortgage for President's Apartment Sale Sparks Debate

President Lee Jae-myung has decided not to collect interest from the buyer regarding a mortgage of approximately 1.7 billion won set upon the sale of his apartment in Bundang.

Ahn Gwi-ryung, Deputy Spokesperson for the Presidential Office, announced this during a morning broadcast on the official presidential YouTube channel 'Fact Bangatgan'.

[Ahn Gwi-ryung / Deputy Spokesperson for the Presidential Office (Presidential YouTube 'Fact Bangatgan'): "Given the large amount, the interest alone would be substantial if the balance payment is deferred for several months. However, it has been confirmed that no interest will be charged."]

Han Moon-do, a visiting professor in the Department of Real Estate at Seoul Digital University who appeared on the broadcast, stated, "This part also seems to be a consideration made by the President," adding, "The balance deferral period is not 1 to 2 years, but a difference of 3 to 4 months. Considering those factors, no interest was charged."

He continued, "If the buyer fails to pay the money by the balance due date, the interest amount is guaranteed under civil law, so the mortgage will be executed by calculating the overdue interest rate," and asked, "From the buyer's perspective, they didn't buy the house to face such a situation, did they?"

Recently, President Lee set a maximum bond amount mortgage of 1.77 billion won, which is 61% of the purchase price, targeting the buyer during the process of selling his apartment in Bundang-gu, Seongnam-si, Gyeonggi-do, for 2.9 billion won.

This method involves transferring ownership to the buyer before the purchase price is paid in full, while setting up a mortgage for the remaining unpaid balance.

It is reported that the buyers plan to sell the apartment they currently reside in by the end of October, pay the balance with those proceeds, and then cancel the mortgage.

Regarding this mortgage, the Presidential Office explained the day before yesterday that it was a measure taken in consideration of the buyer's circumstances.

However, the People Power Party criticized the move, stating, "While labeling even gap investment as speculation and thoroughly regulating loans, President Lee has sold a house on credit."

(Reported by Kim Jiuk | Video by Seo Byeong-wook | Graphics by Yang Hye-min | Produced by SBS Digital News | Source: Presidential YouTube 'Fact Bangatgan')
※ Please note: This article was translated by AI and may contain errors.