Korea Communications Commission Candidate’s Controversial Apartment Sale: Questions on Gift Tax and Real Name Financial Act Violation

2023-08-05 12:18:00

[앵커]

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Lee Dong-gwan, a candidate for chairman of the Korea Communications Commission, sold a reconstructed apartment four years ago and made a profit of regarding 2.5 billion won, of which 800 million won was confirmed to have repaid the loan in the name of his wife.

Experts believe that gift tax should have been paid because this corresponds to a ‘gift between husband and wife’, but the couple of candidates did not pay and stated their position to the effect of ‘determining that it was not a gift’.

Exclusive report, reporter Siwon Kim.

[리포트]

This is an apartment in Seocho-gu, Seoul, where candidate Lee Dong-gwan made a transfer profit of 2.5 billion won.

Purchased in 2001 and sold for 3.19 billion won right following reconstruction in 2019.

Since Lee held 99% of the shares, most of the sale amount was Candidate Lee Dong-gwan’s money, except for his wife’s 1% stake.

However, regarding a month following the candidate sold the house, all of the 800 million won bank loan borrowed in the name of the candidate’s wife was repaid with the house as collateral.

The candidate’s money from the sale of the apartment was used to pay off his wife’s loan instead.

Candidate Lee’s wife is a housewife with no separate income, and there is no inherited property at the time.

It is the opinion of multiple tax experts that it should be viewed as a ‘gift between husband and wife’.

[안창남/강남대 세무학과 교수 : “채무자의 직업, 연령, 소득, 재산상태 등으로 볼 때 어렵죠. 왜냐하면 이 사람 배우자는 아무것도 소득이 없는데…”]

Gifts between husband and wife are tax-exempt for up to 600 million won, but gift tax must be paid for gifts over that amount.

A tax expert estimated that the gift tax to be paid by Lee’s wife is regarding 50 million won, including penalty tax.

In response to KBS inquiries related to the gift tax, Candidate Lee said that his wife proceeded with the loan process on behalf of him, who was busy with external activities, and that he provided collateral.

In addition, it explained that it was judged that it was not subject to gift tax payment because it was a daily economic activity between married couples, a living community.

However, experts point out that if the candidate’s explanation is interpreted literally, there is a possibility of ‘violation of the Financial Real Name Act’.

[안창남/강남대 세무학과 교수 : “정상적으로 하려면 남편이 부인한테 증여를 해주고 그 돈으로 금융 거래를 해야 되는 거잖아요. 금융실명법 위반으로 돼서 이건 과태료 처분을 받아야 돼요.”]

Candidate Lee’s side has conveyed the position once more that they believe that it is not a violation of the Real Name Financial Act because he received a loan in his wife’s name by providing collateral.

This is Kim Siwon from KBS News.

Cinematographer: Kim Han-bin, Kim Hyun-min, Heo Su-gon/Video editing: Han Hyo-jeong/Graphic: Ahn Jae-woo

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