"Nam Hyun-hee, Should She Pay Bentley Gift Tax?"... What Is the National Tax Service Chief's Response?

4 Billion Won Bentley Gifted by Jeong Cheong-jo Subject to 20% Gift Tax Rate

Former national fencing athlete Nam Hyun-hee, who remarried Jeon Cheong-jo, has faced claims that gift tax should be imposed on the high-priced imported car she received as a gift from him.

Photo by Nam Hyun-hee, Instagram capture

On the 3rd, Yoo Ki-hong, a member of the Democratic Party of Korea, questioned Kim Chang-gi, Commissioner of the National Tax Service, during the budget review of economic departments at the Special Committee on Budget and Accounts, saying, “Jeon Cheong-jo gifted Nam Hyun-hee a Bentley worth about 400 million won,” and asked, “Is there a plan to collect gift tax?”

According to the Inheritance and Gift Tax Act, gift tax is imposed on property or benefits received without compensation. If the Bentley gifted to Nam is worth 400 million won, a tax rate of 20% applies to the taxable base (100 million to 500 million won), meaning she would have to pay approximately 70 million won in gift tax.

Nam testified that she received not only the Bentley worth 400 million won from Jeon but also luxury bags and clothing worth several million won. She also claimed that Jeon gave several million won in monthly allowances to her mother and younger brother.

Representative Yoo said, “The Bentley was purchased by Jeon Cheong-jo and is currently registered under Nam Hyun-hee’s name. A definite gift has been made,” and asked again, “What plans do you have regarding this matter?”

Commissioner Kim replied, “It is difficult to comment on matters concerning individual taxpayers,” but added, “In principle, if the conditions for taxation under the tax law are met, we impose taxes properly.”

When Representative Yoo asked again, “Should taxes be paid?” Commissioner Kim responded, “It is difficult to comment as I have not grasped the specific details.” In response, Representative Yoo urged, “Please quickly investigate and consider how to realize tax justice.”

Recently, Jeon admitted to charges of embezzling investment funds from at least 15 people by inducing investments through lectures he gave. On the afternoon of the 3rd, the Seoul Eastern District Court issued an arrest warrant for Jeon, who is accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, citing concerns that he might flee and that his residence is uncertain.