Lee Jae-myung's 'Gimpo House Prices' Remark Backlash... Local Civic Group Opposes "2-3 Billion Won for 20 Pyeong? Unusual Sense of Reality"

Lee Jae-myung, the Democratic Party presidential candidate, is rehearsing before the start of the 2022 presidential candidate invitation debate jointly hosted by six broadcasting companies and organized by the Korea Association of Journalists at the Maeil Business Newspaper Media Center in Jung-gu, Seoul, on the afternoon of the 11th.
[Photo by Yonhap News]

[Asia Economy Reporter Hwang Sumi] A local civic group has strongly opposed Lee Jae-myung, the Democratic Party presidential candidate's remarks about house prices in Gimpo.

According to political circles on the 12th, during a presidential candidate TV debate hosted by the Korea Journalists Association the previous day, Lee made a controversial statement while explaining his pledge to ease the loan-to-value ratio (LTV) for first-time homebuyers and responding to criticism from Sim Sang-jung, the Justice Party candidate.

When Sim pointed out that raising the LTV to 90% would result in high loan principal and interest payments, making it a policy only for high-income earners, Lee replied, "The development cost and construction cost are only about half of the market price, and we intend to set the sale price accordingly," adding, "The total debt service ratio (DSR) would be around 200 to 300 million won for a 20-pyeong (approximately 66 square meters) unit."

When Sim asked, "In which area can you find a 20-pyeong unit priced at 200 to 300 million won?" Lee responded, "Places like Gimpo are definitely possible."

Sim then questioned again, "Is there a 20-pyeong unit in Gimpo? Is it 300 million won?" Lee stopped her, saying, "Please don't do that," and further explained, "My plan is to include future income in the DSR calculation."

In response, the Gimpo-Gemdan Citizens' Coalition, composed of residents from Gimpo, Gyeonggi Province, and Geomdan, Incheon, issued a statement on the 12th criticizing Lee, saying, "Despite having served as governor of Gyeonggi Province, he has an unusual sense of reality, thinking that places like 'Gimpo' are areas where you can buy a house for 200 to 300 million won."

They particularly targeted Lee's repeated use of the phrase "places like Gimpo," mocking his remarks.

The coalition pointed out, "Lee promised to make the Ilsan Bridge toll-free for people living in 'places like Gimpo' but failed to keep that promise," and "He said he would reconnect the Seoul Metropolitan Express Railroad (GTX) Line D from Gimpo to Hanam but changed his stance to a Y-shaped route the next day."

They added, "Based on this unusual sense of reality, Lee aspires to become president, but the 500,000 people living in 'places like Gimpo' now say goodbye," declaring their withdrawal of support.

Lee's camp clarified, "He did not mean that 20-pyeong apartments currently in Gimpo are priced at 200 to 300 million won, but was explaining a housing pledge aimed at young people suffering the most from skyrocketing house prices under the current disadvantageous point-based subscription system due to lack of economic assets."

They also added, "Lee's remarks were about supplying new housing at about half the current market price for young people and the homeless to realize homeownership, and providing loans up to 90% LTV based on the reduced sale price, explaining the pledge supporting this claim."

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