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"Denied All Real Estate Speculation Allegations"…Finally Voluntary Resignation Amid Political Funds Act Suspicion (Comprehensive)

Jung Ho-young Followed by Kim Seung-hee Ministerial Nominee's Midterm Withdrawal
Ruling Party Also Says 'Resignation Inevitable' After Election Commission's Prosecutor Referral

"Denied All Real Estate Speculation Allegations"…Finally Voluntary Resignation Amid Political Funds Act Suspicion (Comprehensive) [Image source=Yonhap News]


[Asia Economy Reporter Jo In-kyung] Kim Seung-hee, nominee for Minister of Health and Welfare, ultimately resigned voluntarily after 39 days since her nomination. As the Central Election Commission requested a prosecution investigation over recent allegations of violations of the Political Funds Act, and calls for her resignation grew even within the ruling party, she finally decided to step down on her own.


According to sources inside and outside the Ministry of Health and Welfare on the 4th, although various suspicions were raised by the National Assembly and the media regarding Kim’s past statements, policy positions, and allegations of her mother’s illicit real estate gift, she had actively explained and expressed no intention to resign since her nomination.


According to the office of Democratic Party lawmaker Kang Byung-won, Kim Seung-hee, while serving as Deputy Commissioner of the Korea Food and Drug Administration in 2012, purchased an apartment in Dodam-dong, Sejong City, and sold it in 2017 for 424 million KRW. Considering the original sale price was around 250 to 280 million KRW, she made a profit of over 150 million KRW in five years.


It was also revealed that Kim lived in official housing rather than the apartment she was allotted through a special public official supply while working at the Korea Food and Drug Administration. Although suspicions arose that she acquired the special supply apartment for financial gain, Kim explained, "There was absolutely no economic gain intended."


Suspicions were also raised regarding real estate transactions involving Kim’s mother and children. It is suspected that Kim’s eldest daughter illegally received an apartment in Sangdo-dong, Seoul, as a gift from her maternal grandmother after purchasing it for 460 million KRW in 2019 and then leasing it back to the grandmother for 360 million KRW. Kim’s side denied this, stating, "It was a normal transaction with no legal or procedural defects."


Additionally, controversy emerged over the use of "mom’s chance" in her child’s employment process. According to the office of Democratic Party lawmaker Choi Jong-yoon, Kim’s eldest daughter applied alone and was hired by a public institution under the Ministry of Land, Infrastructure and Transport, but the job posting was not published on the official site at the time. Kim explained, "My child applied after seeing the recruitment site, and I was not involved in the employment activities."


Other allegations included that Kim replaced her parliamentary aides 48 times during her term as a lawmaker and that she introduced a bill to ease apartment reconstruction regulations, which could have resulted in a conflict of interest as a potential beneficiary. Each time, Kim actively refuted the allegations by submitting around 35 documents.


Despite these ongoing suspicions, as the confrontation between the ruling and opposition parties over the National Assembly’s organization prolonged, there was speculation that Kim might be appointed minister without a confirmation hearing. However, the atmosphere shifted after repeated allegations of violations of the Political Funds Act surfaced and the Election Commission confirmed some charges and referred the case to the prosecution.


Kim is suspected of using her political funds as a lawmaker to give encouragement money to aides, donate to fellow party lawmakers, repaint and purchase rental cars with political funds, and use legislative policy development expenses for opinion polls. Kim explained, "The vehicle was needed and used during my legislative activities, and I acquired the rental car after becoming familiar with its operation. The repainting was done by the rental company at the end of the contract as per the restoration obligation in the contract." The opposition called strongly for her resignation, and voices demanding her resignation grew even within the ruling party.


In her resignation statement that day, Kim once again explained the allegations. She said, "Since my nomination, numerous criticisms have been raised without objective evidence, including about my family’s private life unrelated to me. Although I repeatedly explained that the various allegations were untrue, it was very difficult as not only my honor but also my family members were hurt in the process."


She added, "Especially regarding political funds, there was absolutely no intentional misuse for private purposes. Although there were issues due to practical errors in the accounting process, I humbly accept the criticism that I cannot be free from ultimate management responsibility."


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