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Return of a controversial figure rekindles debate over real estate speculation

Published: 01 Aug. 2025, 00:03

Joo Jung-wan

The author is an editorial writer at the JoongAng Ilbo.

Kim Eui-kyeom, a former spokesperson for the presidential office, has returned to public service as head of the Saemangeum Development Authority. President Lee Jae Myung appointed Kim to the vice minister-level post on July 20, a move that quickly reignited controversy over his past involvement in real estate speculation.

Nicknamed “Mr. Heukseok” for a high-profile property purchase in Seoul’s Heukseok-dong during his time at the Blue House, Kim left public office in 2019 after admitting to investing in redevelopment property. He later served as a Democratic Party lawmaker but lost the nomination race for the Gunsan district ahead of last year’s general election.

Kim Eui-kyeom, the newly appointed head of the Saemangeum Development and Investment Agency, delivers a greeting at a plenary session of the National Assembly’s Land, Infrastructure and Transport Committee on July 21. [YONHAP]

Aside from local ties to North Jeolla, observers have questioned what qualifications Kim brings to a position overseeing one of Korea’s largest national development projects. The Saemangeum region spans three cities — Gunsan, Gimje and Buan — and covers 409 square kilometers (158 square miles), more than 140 times the size of Seoul’s Yeouido.

Former People Power Party (PPP) leader Han Dong-hoon criticized Kim’s appointment alongside that of Choi Dong-seok, head of the Ministry of Personnel Management, remarking, “Was this lineup designed to provoke public anger?”

Kim faced immediate scrutiny after his appointment. On July 21, he appeared at a meeting of the National Assembly’s Land, Infrastructure and Transport Committee, which oversees the Saemangeum Development Authority. During the session, PPP Rep. Kim Hee-jung revived past allegations, saying, “The public still remembers the fury over the Heukseok-dong speculation.” She called his investment a clear case of using taxpayer-funded privileges for personal financial gain.

The incident dates back to Kim’s tenure as presidential spokesperson under President Moon Jae-in. In early 2019, public disclosure of officials’ assets revealed that Kim had purchased a mixed-use building in the Heukseok District 9 of the Heukseok New Town redevelopment area for 2.57 billion won ($1.85 million). To finance the purchase, he took out loans totaling over 1 billion won under his wife’s name, in addition to using a tenant’s deposit and other private loans. His actual investment, after accounting for these sources, amounted to less than 1 billion won.

As public criticism mounted, Kim stepped down from his post and pledged to sell the property and donate the profits. He later wrote in his book “Kim Eui-kyeom’s Undivided Heart” that he felt unjustly branded a speculator despite having rented homes for most of his life.

Kim was ultimately cleared of wrongdoing by prosecutors. His purchase, known as a “gap investment” — buying real estate with the tenant’s deposit covering most of the price — was legal. Nonetheless, the ethical implications lingered.

During the Moon administration, “war on real estate speculation” was a defining policy slogan. Gap investments, especially in redevelopment zones, were condemned as forms of profiteering. In that climate, Kim’s investment — made while he lived in government housing near the Blue House — sparked accusations of leveraging public office for private gain. Critics dubbed it “official residence real estate arbitrage.”

The site Kim once owned is now part of a massive redevelopment project called H Kentro Nine, with over 1,500 apartment units across 21 buildings scheduled for completion in 2029.

Under the current administration, such investments would be nearly impossible. Following the Lee administration’s June 27 housing measures, loan regulations were tightened. Loans are no longer allowed for home purchases without a primary residence purpose. Even for such purposes, borrowing is capped at 600 million won. While the government calls the rules necessary to stabilize housing prices, some younger Koreans see them as removing the ladder to upward mobility.

Kim’s investment was possible in part due to looser lending rules during the early Moon administration. That historical context, critics argue, does not exempt the Lee administration from clarifying its stance.

The Heukseok-dong area in Dongjak District, southern Seoul, is densely packed with aging single-family and mixed-use buildings and is undergoing large-scale redevelopment. The photo shows Heukseok District 2 in 2020, where a redevelopment project is underway. Heukseok District 9, where Kim Eui-kyeom, now head of the Saemangeum Development and Investment Agency, is known to have invested, sits right next to District 2 and is currently under redevelopment. [YONHAP]

If Kim’s appointment signals that such investment behavior was acceptable, the same standard should apply to others. If, however, the government views gap investments as inherently problematic, Kim’s return to a high-level role raises questions of consistency.

The most troubling scenario, critics warn, is a double standard — denouncing gap investments now while overlooking them in the past. That would convey a message of “it was okay then, but not now,” undermining public trust and fostering a sense of unfairness.

As public sentiment grows more sensitive toward inequality and privilege, the government’s approach to real estate policy — and to the people it appoints — must be guided by consistent principles. Without that, the return of figures like Kim risks more than controversy; it risks deepening political cynicism at a time when trust is in short supply.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.