Candidate Kang "Gifted Hannam-dong Building to Two Sons... Allegations of Illegal Gift Including Gift Tax Payment"
Candidate Yang "Normal Gift Following Government Policy on One Household, Two Houses in 2019"
Amid a fierce battle marked by mutual accusations between Yang Bu-nam, the Democratic Party candidate for Seo-gu (Eul), Gwangju Metropolitan City, and Kang Eun-mi, the Green Justice Party candidate, Kang has now demanded that Yang withdraw, citing suspicions of 'illegal gifting.' In response, Yang countered that it was a 'legitimate gift following proper procedures.'
On the 31st, Kang raised suspicions regarding Yang's gift of a building worth approximately 3 billion KRW in Hannam-dong, Yongsan-gu, Seoul, to his two sons in a statement.
Kang Eun-mi, Green Justice Party candidate for Seo-gu Eul, Gwangju Metropolitan City (left in the photo), and Yang Bu-nam, Democratic Party candidate.
Kang said, "Yang paid the gift tax on behalf of his two sons when gifting the building, and the hurried gift of real estate that is only expected to increase in value appears to be a choice to minimize gift tax as much as possible. Looking at the tax payment records reported to the Election Commission over the past five years, the eldest son paid 37,000 KRW in income tax, and the younger son has no payment record at all. The two sons, who have no significant income, must clearly disclose how much gift tax they paid and the source of the funds for the gift tax," she said.
She added, "There must be an explanation that the public can accept regarding the payment of gift tax for the Hannam-dong house. If illegal gifting is confirmed, I will take legal action on behalf of the citizens of Gwangju."
Kang's claims are based on an article reported by Korea Economic Daily.
In response, Yang immediately issued a statement saying, "While humbly accepting the criticism regarding the 'parental chance' reported by the media, the Hannam-dong house in Seoul that I passed on to my two sons was a legitimate gift following proper procedures, without any 'illegal loans' or 'tricky gifting.'
Yang stated, "The purchase of the Hannam-dong house was made 20 years ago, in 2004, when I was assigned to Seoul, and it was bought with the purpose of residing there and for my two sons to live together when they entered university in Seoul," adding, "The Hannam 3 District redevelopment project was finalized in June 2020, and the detached house was purchased 16 years before the redevelopment was confirmed, so it does not logically align with redevelopment benefits."
He continued, "The gift to my two sons in 2019 was an unavoidable measure to comply with the Moon Jae-in administration's policy against holding two houses per household, especially as a high-ranking public official. It is true that I paid the gift tax on their behalf because my eldest son, who is currently active as a singer, and my younger son, who is preparing for employment, have insufficient income, but when my sons earn income in the future, they plan to repay the gifted amount," he emphasized.
He added, "While I may face criticism that gifting the building to my sons does not meet the public's expectations, I reiterate that there was no speculation for redevelopment benefits, no illegal loans, no tricky gifting, and no gap investment, but rather a legitimate gift."
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