President Moon Jae-in has replaced Kim Sang-jo, the presidential chief of staff for policy, less than a day after it emerged that he had drastically raised the rental deposit on an apartment unit he owns just before laws that would limit the hike to five percent took effect.

According to presidential chief of staff You Young-min on Monday, Moon accepted Kim's resignation offer and named Lee Ho-seung, the senior secretary for economic affairs, as the new policy chief of staff.

You expected the new chief of staff for policy to help restore economic vitality and fulfill the administration's tasks based on his expertise and balanced perspective.

Reports surfaced on Sunday that Kim had renewed a rental agreement with a tenant residing in his Gangnam district apartment by raising the jeonse deposit by over 14 percent from 850 to 970 million won. 

The renewal agreement reached in July came just two days before the new law on the increase cap came into force.

The swift personnel change at the presidential office is viewed as an effort to avoid stoking additional public anger related to real estate matters. President Moon had previously returned a resignation offer by Kim amid public dissatisfaction over prosecution reform in late December.