Supreme Court Justice Nominee Kim Seong-su Says, "Proceeding With Gift Tax Payment; I Am Sorry"

[Financial News] Supreme Court Justice nominee Kim Seong-su, 57, a graduate of the 24th class of the Judicial Research and Training Institute, said he is proceeding with the payment of taxes related to the alleged low-cost lease of a Gangnam apartment through what has been called a “brother-in-law advantage,” expressing regret over the matter.
Kim Seong-su made the remarks on the morning of the 14th while attending a personnel hearing held by the National Assembly of the Republic of Korea’s Special Committee on Personnel Hearings. He was responding to a question from Chae Hyun-il of the Democratic Party of Korea, who asked him to state his position on the gift tax controversy.
Kim Seong-su had faced allegations that he avoided paying gift tax by living long-term under a sublease at a below-market price in an apartment owned by his brother-in-law in Dogok-dong, Gangnam-gu, Seoul. According to Joo Jin-woo of the People Power Party, Kim lived in a 25-pyeong unit at Yeoksam e-Pyeonhansesang in Yeoksam-dong, Gangnam-gu, owned by his brother-in-law, under a lease beginning in February 2011. In June 2021, he moved to a 43-pyeong unit at Dogok Rexle in Dogok-dong. Joo alleged that the brother-in-law first signed a lease worth around 1.5 billion won and then subleased the apartment to Kim for a 350 million won rental deposit. Kim had agreed to pay 800,000 won per month as a form of rent, but Joo pointed out that he did not make the payments from November 2023 through August 2026.
Kim Seong-su explained, "At the time, I had absolutely no intention of personally receiving a gift. I held a claim for part of the deposit I had already paid to my brother-in-law. Although I did not regard it as monthly rent, we had agreed to share the costs of financing."
He continued, "While preparing for the recent hearing, I learned that it could be considered a deemed gift. As a legal professional, saying that I did not know does not meet the public’s expectations... I did not think about that aspect at the time. I am sorry." He added, "I recently consulted a tax accountant to determine whether I was subject to gift tax, and I am proceeding this morning with payment for the portion subject to taxation." He again said he was sorry. Regarding the 800,000 won monthly payments that had not been made since November 2023, he explained that he had recently paid the outstanding amount in a lump sum.
Explaining why he began living with his brother-in-law in 2021, he said, "Around that time, the company in Pangyo where my brother-in-law worked was planning to move its headquarters to an area near Yeoksam-dong, where we lived. My mother-in-law suggested to him, 'That apartment is too small for us to live together, so why don’t you rent a somewhat larger apartment and live with your sister’s family?' After discussing it, my spouse, my brother-in-law and my mother-in-law decided to sell the apartment in Yeoksam-dong and live together."
In his opening remarks before the hearing, Kim Seong-su did not directly mention the allegations. However, he apologized, saying, "I am deeply sorry for causing concern to the committee members and the public through my own shortcomings even before the hearing began."
[email protected] Kim Dong-gyu Reporter