No 'Illegality' Found but Kim Sang-jo Abruptly Replaced... Blue House Acknowledges "Seriousness of Real Estate Situation"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Kim Sang-jo, the Blue House Chief of Policy who raised the jeonse (lease deposit) price by 14% just two days before the enforcement of the Lease 3 Act, which caps the jeonse price increase rate at 5%, was abruptly replaced on the 29th. Although there was no illegality in the process, it appears to have been done in consideration of the public anger triggered by the LH speculation scandal.

According to a key Blue House official, former Chief Kim conveyed his resignation to Secretary Yoo Young-min the previous evening and directly expressed his resignation to President Moon Jae-in that morning.

According to media reports citing the official gazette the day before, former Chief Kim raised the jeonse price by 14% two days before the enforcement of the Lease 3 Act. While there was no legal issue, it was pointed out as an inappropriate act for the Blue House Chief of Policy, who is in charge of the real estate control tower.

Former Chief Kim apologized, saying, "At this critical time when we must make every effort to eradicate real estate speculation, I have caused great disappointment to the people," and stated the reason for his resignation, "Reorganizing the Blue House Policy Office and stepping down quickly to ensure the smooth implementation of real estate policies is the last role I must fulfill as a secretary serving the President."

He added, "Fortunately, the new chief has innate ability and excellent character, and is someone who can achieve the inclusive recovery and leap forward of the Republic of Korea," concluding his remarks with, "I apologize once again."

Regarding former Chief Kim’s 'jeonse price controversy,' the Blue House, which had explained just the day before that the price was "cheaper compared to surrounding market prices," appears to have decided on the abrupt replacement as criticism did not subside. His own concern about whether it was appropriate to attend the Anti-Corruption Policy Council meeting held that afternoon also influenced the replacement decision.

A key Blue House official said, "Considering the very serious situation related to real estate," and added, "He (former Chief Kim) strongly expressed his intention to resign, believing it was inappropriate to participate in today’s Anti-Corruption Policy Council and handle this matter while under such criticism."

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