Lee So-young, nominee for minister of SMEs and Startups, answers lawmakers' questions at her confirmation hearing before the National Assembly's Industry, Trade, Resources, SMEs and Startups Committee on Tuesday. [Yonhap]
Lee So-young, nominee for minister of SMEs and Startups, answers lawmakers' questions at her confirmation hearing before the National Assembly's Industry, Trade, Resources, SMEs and Startups Committee on Tuesday. [Yonhap]

Apartment in Hongje-dong bought for 490 million won in 2016; nominee lived there about 4 years

Moved to Uiwang ahead of 2020 general election; has not resided in unit since

Dispute also flares over tax policy for non-resident single-homeowners

The ownership of an apartment in Seoul's Hongje-dong came under fresh scrutiny Tuesday at the National Assembly confirmation hearing for Lee So-young, nominee for minister of SMEs and Startups. People Power Party lawmaker Choi Su-jin said Lee had held the property for about seven years without living in it after residing there for roughly four years, while Lee pushed back, saying she had never realized any capital gains because she had not sold the unit.

At the hearing before the Assembly's Industry, Trade, Resources, SMEs and Startups Committee, Choi asked Lee whether she had purchased the Hongje-dong apartment for 490 million won ($364,000) in 2016, and Lee confirmed she had. Lee said she lived in the apartment for about four years before moving to Uiwang in Gyeonggi Province in February 2020, when she decided to run in that year's general election.

Choi said Lee had held the Hongje-dong apartment for roughly seven years without actually living there, noting that the unit's current market price stands at around 990 million won — an increase of about 500 million won from the purchase price. Lee said in response that she had not yet sold or otherwise disposed of the property, so no gain had been realized.

The exchange extended to government tax policy on single-homeowners who do not reside in their properties. Choi raised concerns about a policy that applies different tax burdens based on residency status, arguing that some single-homeowners cannot live in their own homes for unavoidable reasons such as schooling or work.

Lee said she understood the government's policy to involve differentiated tax benefits for non-resident single-homeowners rather than direct regulation of non-residency itself.

Choi countered that differentiation itself amounts to discrimination, reiterating that tiered tax treatment for non-resident single-homeowners may fail to adequately account for the varied circumstances of genuine end-users.

Lee's camp has maintained that the Hongje-dong apartment was purchased for residential use, not as an investment, and that she relocated to the constituency to run in the general election. The property has not been sold.


hong@heraldcorp.com