Kim Osu Denies Income Tax Evasion Allegations, Plans to Pay Additional 41 Million Won

Prosecutor General nominee Kim Oh-soo is arriving at the personnel hearing preparation office set up at the Seoul High Prosecutors' Office in Seocho-gu, Seoul, on the 12th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyung-min] Nominee for Prosecutor General Kim Oh-soo has denied allegations that he used a loophole to reduce income tax on advisory fees he received while working as a legal counsel at a law firm.

On the 14th, Kim's confirmation hearing preparation team stated, "The nominee plans to pay an additional 41 million won in taxes on the remuneration received over eight months," adding, "He signed an advisory contract with the law firm as a business entity and must pay comprehensive income tax separately from the withholding tax already deducted."

Regarding claims that he signed a contract as a business income earner rather than as a wage earner to evade taxes, they said, "This is not true."

After retiring as Vice Minister of Justice, Kim worked as a legal counsel at the law firm Hwahyun, receiving a monthly salary of 19 million won from September to December last year and 29 million won from January to April this year, paying withholding income tax of 600,000 won and 900,000 won per month, respectively.

Earlier, a media outlet raised suspicions that Kim reported his advisory fees as business income and paid only 600,000 won and 900,000 won monthly in taxes, about one-tenth of what wage earners pay.

Wage earners have taxes withheld monthly from their salaries according to the National Tax Service withholding table and settle their taxes through year-end tax adjustments the following year. In contrast, individual business owners have only 3% of their income withheld at once and settle taxes by filing comprehensive income tax returns in May of the following year. The tax rates for wage income and business income are the same.