"Will 'Appa Chance' Sway Voters... Real Estate Controversy Shaking the General Election"

Controversy Over Assets Including Illicit Loans Heightens Attention on Seoul Metropolitan Votes
Democrats Yang Bu-nam, Gong Young-woon, Yang Moon-seok... Ruling Party Jang Jin-young, etc.
Lee Jae-myung Remains Silent... Han Dong-hoon Attacks Linking to Daejang-dong Scandal

With the general election just 9 days away, both ruling and opposition parties are struggling over candidates' real estate issues. Suspicious circumstances have been uncovered where candidates allegedly used loopholes in the process of increasing their assets or granted special favors to their children through so-called 'appa chance' (dad's advantage). Since real estate is an issue that could shake public sentiment in the metropolitan area and swing the centrist votes holding the casting vote in closely contested districts, both parties appear tense.

According to the National Election Commission on the 1st, Yang Bu-nam, the Democratic Party candidate for Gwangju Seo-gu Eul, has two sons who each own half of a detached house located in Hannam 3 Redevelopment Promotion Zone in Yongsan-gu, Seoul, according to his declared assets. Yang's spouse gifted the house to their two sons eight months after the redevelopment project plan was approved in 2019, and Yang paid the gift tax at that time. Yang's camp stated, "We humbly accept the criticism of 'parental advantage,' but there was no illegal loan, and the gift was a legitimate procedure, not a sneaky transfer."

The election campaign office of Yang Moon-seok, the Democratic Party candidate running for Ansan Gap in the 22nd National Assembly election on the 31st.
[Image source=Yonhap News]

Gong Young-woon, the candidate for Hwaseong-si Eul in Gyeonggi Province, was also embroiled in the 'appa chance' controversy. The former president of Hyundai Motor Company gifted a multi-family house located in Seongsu-dong, Seongdong-gu, Seoul, to his son in 2021, when the son was 22 years old and serving in the military. The property's market price nearly tripled during the purchase and gifting process, raising suspicions of speculation. Lee Jun-seok, leader of the Reform New Party and a competitor in the district, pointed out that the development accelerated after the nearby Sampyo Remicon factory relocated and that the factory landowner was Hyundai Steel, an affiliate of Hyundai Motor Group, suggesting the possibility of insider information use.

Also, Yang Moon-seok, the candidate for Ansan-si Gap in Gyeonggi Province, was found to have taken out an 1.1 billion KRW 'personal business loan' in the name of his 20-something daughter, a university student, when purchasing an apartment in Jamwon-dong, Seocho-gu, Seoul, in 2020. Following past remarks that disparaged the late former President Roh Moo-hyun, which caused a 'verbal abuse controversy' during the nomination process, this time it was confirmed that he took a high-value illicit loan under his daughter's name. Yang acknowledged the irregularity but emphasized that it was not a 'fraudulent loan.' Saemaeul Geumgo Central Association, which processed the loan, began an on-site inspection regarding the suspicion from that day.

The People Power Party is raising criticism against the Democratic Party using these issues as leverage, but it is not free from controversy either. Jang Jin-young, the candidate for Dongjak-gu Gap in Seoul, purchased land in Gongheung-ri, Yangpyeong-gun, Gyeonggi Province, for 8 billion KRW in 2021, with over 90% of the funds borrowed from a credit union where his father served as a director. This area had been noted as a beneficiary region in case of a terminus change of the Seoul-Yangpyeong Expressway.

In the Innovation Party for Justice, the wealth of Park Eun-jeong, the number one proportional representative candidate, also came under scrutiny. Her husband, former prosecutor Lee Jong-geun, defended a figure involved in a 2 trillion KRW cryptocurrency scam after retiring last year, and the couple's assets increased by about 4.1 billion KRW in the past year. Defending a suspect in a fraud case that swindled about 2.8 trillion KRW from approximately 50,000 investors, along with the high legal fees, has been criticized as inconsistent with public sentiment.

'Unfair Issues' Emerging as a Last-Minute Variable in the General Election

People Power Party's Han Dong-hoon, Emergency Response Committee Chairman and General Election Countermeasures Committee Chairman, is appealing for support together with candidate Kim Eun-hye at Ori Station Square in Seongnam-si, Gyeonggi Province on the morning of the 31st.
[Image source=Yonhap News]

Since these issues are related to asset accumulation that can be perceived as 'unfair,' each party is showing deep concern. Especially the Democratic Party is under pressure both inside and outside the party for 'poor verification' of candidates as an extension of the 'nomination turmoil.' If the negative impact on the general election becomes significant, last-minute withdrawals cannot be ruled out. Political commentator Park Sang-byeong diagnosed, "If unfair controversies about candidates who do not meet the public's standards continue, parties will consider candidate withdrawals due to concerns about the overall election impact."

The Democratic Party is avoiding escalation by adopting a 'no response policy,' citing that these are individual candidates' issues. Kang Min-seok, spokesperson for the Central Election Countermeasures Committee, said at the National Assembly the previous day, in response to a question about why the party did not issue a statement on Yang Moon-seok's issue, "It's not that we are not issuing a statement, but individual candidates should respond to issues they face. Isn't it the same for the People Power Party?"

The ruling party continues its offensive, pointing out that relatively more controversial candidates belong to the Democratic Party. Han Dong-hoon, emergency committee member of the People Power Party, mentioned Yang Moon-seok's explanation during a campaign event in Seongnam-si, Gyeonggi Province, that no one was harmed by his loan, and criticized, "If you look at it that way, then the Daejang-dong corruption of Lee Jae-myung, the party leader, had no victims, and Lee's use of corporate cards had no victims either. Are you kidding me?"

Yoon Jae-ok, floor leader, also criticized at a campaign committee meeting held at the party headquarters in Yeouido, Seoul, saying, "Real estate, preferential treatment for former officials, and 'appa chance' suspicions are serious issues that strike at the public's nerve." He particularly pointed out, "In the Innovation Party for Justice, the number one candidate's husband's ultra-high legal fees and preferential treatment suspicions have emerged. Following the river of Cho Kuk, the river of Park Eun-jeong seems to be flowing. The 2.2 billion KRW legal fee is an amount that cannot be justified by any excuse."