"'8 Billion Won Real Estate Owner' Kim Hye-kyung's Secretary Requires Investigation into Source of Funds"

Park Soo-young "Annual Pre-Tax Lifetime Income Less Than 400 Million Won"
National Tax Service Commissioner "Sequential Verification Based on Taxation Benefits"

A claim has been made that the personal secretary of Kim Hye-kyung, spouse of Lee Jae-myung, leader of the Democratic Party of Korea, owns real estate assets worth approximately 8 billion KRW, prompting calls for the National Tax Service to investigate the source of the funds.

[Image source=Yonhap News]

On the 16th, Park Soo-young, a member of the People Power Party, stated at the National Assembly’s Planning and Finance Committee audit of the National Tax Service held in Yeouido, "The annual pre-tax lifetime income of the personal secretary A, who has saved every penny without spending, is less than 400 million KRW," and questioned, "How could they purchase real estate worth over 2.5 billion KRW, and how do they possess assets that have increased to nearly 8 billion KRW?"

Park further argued that the National Tax Service should investigate the source of the funds. He said, "According to Article 45, Paragraph 1 of the Inheritance and Gift Tax Act, if it is difficult to recognize that the property was acquired through one’s own resources, it is presumed to be a gift, and the source of funds investigation should be conducted."

He added, "After requesting and receiving data on A’s income from the Gyeonggi Provincial Government and the Ministry of the Interior and Safety, the total pre-tax income received while working amounts to 367 million KRW."

Park also pointed out, "Looking at the houses owned by A, there is a commercial-residential property in Suwon Gwanggyo worth 3.5 billion KRW, an apartment in Jamsil worth 2.85 billion KRW, an apartment in Jeongneung worth 825 million KRW, and an apartment in Bundang worth 745 million KRW, totaling 7.92 billion KRW," estimating that "the purchase price is about 2.5 billion KRW."

Kang Min-soo, Commissioner of the National Tax Service, responded, "We analyze similar cases internally regardless of who is involved and verify them sequentially based on the practical benefits of taxation."