"100 Million Rental Income with Only 1 Million Won Tax, Too Much"
Candidate Park's Family Owns 86 Officetel Units Among 5 Members
Park: "Not Speculation. No Transactions Have Occurred"
Kim Kyung-yul, Vice Chairman of the People Power Party's Central Election Countermeasures Committee, raised allegations of tax evasion against Park Min-gyu, the Democratic Party candidate running in the Seoul Gwanak-gap district, on the 3rd. He claimed that despite earning annual rental income in the hundreds of millions of won from operating officetels, Park paid only 1.7 million won in taxes.
Kim, a certified public accountant, stated at the Central Election Committee meeting that morning, "There are officetels owned by the Park Min-gyu family in Gwanak-gap," adding, "To be precise, five people?Park himself, his father, mother, eldest sibling, and second sibling?own 86 units."
Kim Kyung-yul, Vice Chairman of the People Power Party Central Election Countermeasures Committee [Image source=Yonhap News]
He continued, "Monthly rent is 850,000 won and 750,000 won depending on the deposit, and the management fee is 130,000 won per month," explaining, "Each unit generates about 10 million won in annual rental income. With 86 units, that amounts to 860 million to nearly 1 billion won."
Kim pointed out, "Park owns all 11 units on the 6th floor, generating rental income worth about 100 million won annually," and added, "However, the tax payment Park reported for 2023 was only 1.7 million won. Rental income is unearned income and is subject to heavy taxation. Is this possible?"
He also said, "In 2022, 4.6 million won; in 2021, 1.6 million won; in 2020, 1.1 million won; and in 2019, 7.2 million won were reported," and claimed, "There is also a building in Dangjin with a declared value of 290 million won. Rental income worth about 100 million won annually is generated, but the tax is only 1 million won. Isn't this excessive?"
In response, Park stated on his blog on the 31st of last month, "It is not 84 units but one officetel (building)," and "This is not speculation. There has not been a single sale to date." Park also announced plans to file complaints against Yoo Jong-pil, the People Power Party candidate for Gwanak-gap who first raised the allegations, with the Gwanak District Election Commission and Gwanak Police Station.
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