4 units at complex tied to Lee Hye-hoon fraud allegations to go back on market — with up to W4b in potential gains

Four apartment units at Raemian One Pentas in Banpo-dong, Seocho-gu, Seoul — linked to fraudulent subscription allegations that derailed the nomination of Lee Hye-hoon as Ministry of Planning and Budget minister earlier this year — are expected to return to the market after their contracts are canceled. The units are anticipated to draw a flood of applicants with no homes of their own, given that winning one could yield a market-price gain of several billion won. However, if those facing the fraudulent subscription charges contest the cancellations through civil litigation or other legal action, a court ruling voiding the contracts would be required before any new subscription schedule can be set.

According to the Ministry of Land, Infrastructure and Transport on Thursday, the ministry is currently proceeding with contract cancellations on four units with an exclusive use area of 84 square meters — out of 41 cases flagged for suspected false address registration during its inspection of Raemian One Pentas last year.

All four units subject to the cancellations are 84-square-meter units. Their pre-sale prices at the time of launch ranged from 2.2 billion to 2.3 billion won, but the current market price for comparable units in and around the complex has risen to between 5 billion and 7 billion won.

Should the units be re-released through an unranked subscription or similar process, the eventual winners could pocket a gain of up to 4 billion won.

Raemian One Pentas was dubbed the "lottery subscription of the century" when it launched in July 2024, with more than 130,000 applicants competing for just 292 general-sale units — a reflection of the strong market-price gains that were expected even then.

Just two months after the launch, however, a Ministry of Land, Infrastructure and Transport field inspection of private-sector pre-sales found that 41 cases — roughly 14 percent of all general-sale units — showed signs of fraudulent subscriptions, including false address registrations.

Even so, it is expected to take considerable time before the cancellations are formally completed and the units actually return to the market.

Those facing the fraudulent subscription charges are likely to challenge the cancellation orders through civil suits or other legal channels, meaning a court ruling confirming the cancellations would be required before a new subscription schedule could be drawn up.