The People Power Party (PPP) launched an all-out offensive today (July 21) regarding President Lee Jae-myung's decision to set a mortgage of 1.7 billion won during the sale of his apartment in Bundang, calling for a comprehensive review of real estate loan regulations.

PPP Representative Jang Dong-hyuk posted on Facebook today, mocking the situation by saying, "As the public struggles with real estate loan regulations, President Lee Jae-myung has personally provided a solution. It is a seller-financed loan, or 'Deobureo Mortgage' (a play on the name of the opposition party)."

He continued his criticism, stating, "They blocked everything by claiming that easing loans would lead to speculation, insisted that jeonse (lump-sum housing lease) is private financing that should be abolished, threatened punishment for buying homes with business loans, and even discouraged corporate loans for real estate. Now, the President himself is creating both the regulations and the loopholes."

He added, "I hope it is not a case of 'I said I sold the house, and people actually believed it.' The capital gain was over 2 billion won; perhaps you should share the 'excess profit' with the public?"

Secretary-General Jeong Hee-yong said during the floor strategy meeting today, "While locking the doors to loans for the public under the guise of stabilizing housing prices, the President himself has hollowed out the very regulations he created by privately lending a large sum of money. This is typical hypocrisy." He added, "It is a staggering double standard to label the public's desire to take out loans to buy homes as 'speculation,' while the President himself sells a house by providing a loan."

Kim Mi-ae, Senior Deputy Floor Leader for Policy, urged President Lee to "transparently explain the specific financing structure and the circumstances behind the mortgage registration to the public, and apologize to the real-demand buyers who have been deprived of normal housing transactions due to excessive loan regulations." She further demanded, "Immediately conduct a full-scale review of the harsh loan regulations that are hindering real-demand buyers."

Senior Spokesperson Choi Bo-yoon pointed out in a commentary, "The apartment complex was facing a designation notice for a reconstruction project at the end of this month, which could have rendered it a so-called 'water ticket' (a property ineligible for a new apartment unit), making it subject to cash liquidation." She added, "Ultimately, when blocked by loan regulations, they resorted to a financial loophole of 'registration first, balance later' to protect the reconstruction value and the 2.9 billion won sale price."

She criticized, "Ordinary citizens cannot afford to leave a large balance unpaid for months. However, President Lee is currently living in the presidential residence. It is a double standard to apply financial flexibility to his own real estate transactions while imposing strict regulatory principles on the public."

Senior Spokesperson Kim Tae-kyu also stated in a commentary, "This means that, excluding the down payment, the buyer effectively paid nothing. Since the buyer is a multi-home owner who already owns a house in the same complex, they are ineligible for even a single won in bank loans under the Lee Jae-myung administration's regulations. In the end, the house price was covered by the tenant's jeonse deposit and the President's mortgage."

Four-term lawmaker Ahn Cheol-soo also wrote on Facebook today, "I never imagined that the President of a nation would use 'seller financing,' a technique secretly utilized by buyers of ultra-high-priced homes, to engage in interest-earning business through private lending." He pointed out, "Instead of making efforts to stabilize housing prices, President Lee is showing behavior like a 'real estate bluegill,' disrupting the real estate market himself."

Five-term lawmaker Yoon Sang-hyun criticized in a Facebook post, "The President himself has demonstrated the reality that government loan regulations are making normal transactions difficult. Ultimately, regulations have become shackles for the working class while creating new types of transaction methods in the high-end housing market. Has the regulation really normalized the market, or has it created a deformed one?"

Four-term lawmaker Yoo Eui-dong appeared on KBS's 'Jeon-gyeok Sisa' today and said, "(President Lee) has gone beyond a loophole transaction and taught a new type of gap investment method. He said jeonse is private financing that should be abolished, yet he engaged in private financing himself. This will likely become a trend."

Lee Jun-seok, leader of the Reform Party, wrote on Facebook, "Without needing a long analysis, (President Lee) could have easily found a buyer with sufficient funds if he had offered the house at a slightly lower price. Why did he specifically look for a buyer with such complex conditions? Is it an acquaintance?"

(Photo: Yonhap News)