Cheong Wa Dae: "President Lee Decided Not to Receive Mortgage Interest... Gift Tax to Be Handled According to Regulations"

Cheong Wa Dae announced that President Lee Jae-myung has decided not to receive interest on a collateralized mortgage of approximately 1.77 billion won set during the process of selling his apartment in Bundang.

Deputy Spokesperson Ahn Gui-ryung made the remark during an appearance on Cheong Wa Dae's official YouTube program, Fact Bangatgan, hosted alongside Han Moon-do, a professor of real estate at Seoul Digital University, to discuss the sale of the President's residence.

Regarding the arrangement where the final payment date is deferred until around October while keeping the mortgage in place, Deputy Spokesperson Ahn stated, "Since the amount is large, the interest would be substantial for a deferment of a few months, but we understand the decision was made not to collect interest."

In response, Professor Han noted, "It appears the President made this consideration for the buyer. People might ask why he isn't taking the interest, but it's a difference of three to four months, not one or two years."


However, some pointed out that waiving the interest could potentially become an issue as it might be regarded as a de facto gift.

In connection with this, Cheong Wa Dae officials stated, "The issue of gift tax arising from the zero-interest arrangement will be handled in accordance with relevant regulations," implying that the buyer will pay the applicable gift tax.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.