Han Seong-sook Addresses Allegations of Improper Gift Tax Related to Apartment

On July 7, Han Seong-sook, the nominee for Minister of SMEs and Startups, responded to allegations raised by the opposition regarding the improper gifting of her apartment in Jamsil. She admitted, "I was not sensitive to the need to establish a rental relationship with my mother," and called it a "personal oversight." The accusations, brought forth by Kim Seong-won, a member of the People Power Party, suggest that Han allowed her mother to live in her Jamsil apartment rent-free, effectively constituting an improper gift.

Speaking to reporters as she arrived at her office in Yeouido, Han clarified, "This was a house where I lived with my mother, and she is currently residing there. I did not consider it an improper gift." She further explained, "My mother is over 80 years old and has no income. I was unaware that I needed to establish a rental agreement with her when I moved out, and I was not sensitive to that issue."

According to the Inheritance and Gift Tax Act, if someone other than the owner benefits from the free use of real estate, it is subject to gift tax, which must be reported within three months.

Han moved to a detached house in Samcheong-dong in March 2022, the same day her mother registered as the head of the household for the Jamsil apartment. Her mother had previously moved into the apartment in October 2018. Kim Seong-won raised concerns that Han's move to Samcheong-dong effectively constituted an improper gift of the Jamsil apartment to her mother.

Kim pointed out that the apartment was valued at approximately 2.3 billion KRW as of May 2022, which would mean that Han's mother should have paid around 14 million KRW in gift tax for the free use of the property.

Han stated, "If I were to gift it to my mother, she would have to pay the gift tax directly, and later, if I inherit it, I would have to pay inheritance tax again. I will present relevant materials and explain the current situation during the hearing."

The National Assembly's confirmation hearing for Han Seong-sook is scheduled for July 15.