Nominee for Minister of Land, Infrastructure and Transport Hong Ji-sun explained today (Sept. 14) that the reason for extending the principal repayment grace period on a loan she borrowed from her mother-in-law during a home purchase was to secure funds for her children's graduate school tuition.

Ahead of her confirmation hearing, nominee Hong gave this explanation in a written response submitted to the National Assembly's Land, Infrastructure and Transport Committee regarding criticism that extending the principal repayment grace period of the borrowed funds to three years effectively constitutes a gift.

"My spouse borrowed money from my mother-in-law in 2025 to pay for an apartment intermediate payment, and since our children's admission to graduate school was decided for 2026 and onward, we signed a modified contract to extend the principal repayment deferral period to cover tuition and other expenses," she explained, adding, "Since the borrowing last year until now, we have been transferring monthly interest to an account applying the statutory interest rate of 4.6 percent per annum."

In May 2025, nominee Hong jointly purchased an apartment in Sindorim-dong, Guro-gu, with her spouse for 1.005 billion won, receiving a mortgage loan of 367 million won. Her spouse also borrowed 170 million won from her mother after writing a promissory note, and altered the contract this year to extend the principal repayment grace period from one year to three years.

She stated that she moved into the residence last year and has been living there in person ever since.

Regarding criticism that utilizing a mortgage loan in the 300 million won range runs counter to the current government's stance on regulating household debt and mortgages, nominee Hong stated, "Unlike when I purchased the home, the housing market has overheated mainly in parts of Seoul and the metropolitan area, making the designation of regulated areas and strengthened loan regulations inevitable for market stabilization and demand management. However, I feel a heavy sense of responsibility over the fact that it has become difficult for citizens to move upward in terms of housing."

In response to criticism that her housing transaction history contradicts her past policy stance emphasizing "the supply of housing where people can reside stably without excessive jeonse or loans," she answered, "That remark did not deny the jeonse system or using loans to a certain extent when purchasing a home," adding, "It meant to provide an additional option of long-term and stable public housing to citizens burdened by high housing costs, thereby enabling various residential forms."

(Photo: Yonhap News)