Lee Nak-yeon Explains Source of Jeonse Funds for Jongno Apartment: "Moving In After Leasing the Apartment"

Former Prime Minister Lee Nak-yeon [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] Former Prime Minister Lee Nak-yeon denied allegations that he took out a jeonse loan just before the implementation of the jeonse loan regulations.

On the afternoon of the 16th, Lee posted on his Facebook, "I signed a jeonse contract for an apartment in Jongno-gu, and some media outlets reported suspicions about the source of the jeonse funds," adding, "I have rented out the apartment where I have lived since 1994 and used that money to enter the Jongno apartment on a jeonse basis."

Earlier, a media outlet reported that Lee might have taken out a jeonse loan before the regulations were enforced. According to the report, Lee signed a jeonse contract last week for the 'Gyeonghuigung Xi' apartment in Jongno-gu, Seoul, for 900 million won.

The government announced detailed enforcement plans on the 16th stating that from the 20th, people owning high-priced homes valued over 900 million won will not be able to receive jeonse loans. The media outlet suggested that Lee might have taken the jeonse loan as a 'last-minute' move before the regulation took effect.

In response to the controversy, Lee's side explained that the jeonse deposit for the 'Gyeonghuigung Xi' apartment was covered with money received from the jeonse deposit of an apartment in Jamwon-dong, Seocho-gu.

There was speculation that during the approximately 2 years and 7 months Lee stayed at the Prime Minister's residence in Samcheong-dong, the Jamwon-dong apartment was rented out on a jeonse basis, but it was reported that the Jamwon-dong apartment was left vacant during his tenure as Prime Minister.

Lee, who ended his term as Prime Minister on the 14th, stayed at the Jamwon-dong apartment for about two weeks and will move to Jongno-gu in early February.

This content was produced with the assistance of AI translation services.