Kim Hyeong-dong "Gave Daughter Jeonse Deposit and Evaded Taxes"... Jeon Hae-cheol "Received Interest on IOU"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] On the 11th, Kim Hyung-dong, a member of the People Power Party, raised suspicions that Jeon Hae-cheol, the nominee for Minister of the Ministry of the Interior and Safety, lent money to his child for a jeonse deposit and then wrote the promissory note belatedly to evade taxes. Jeon’s side denied the suspicion, stating that the promissory note was written at the time the money was lent and that interest was properly received.

According to Rep. Kim, Jeon lent 70 million won in 2017 to his eldest daughter for a jeonse deposit on an officetel in Yongsan-gu, Seoul. Rep. Kim stated that the promissory note for this was recorded in the National Assembly’s personnel hearing request as having been written in 2019. He also explained that although the promissory note stated that the interest rate was set at 2% per year, the specific repayment timing or method was not written.

Rep. Kim said, "In 2019, Jeon was being considered as a candidate for Minister of Justice," adding, "There is suspicion that the promissory note was hastily created later to avoid tax issues." In response, Jeon’s side issued a statement dismissing the tax evasion suspicion as groundless.

Jeon’s side said, "We have the promissory note written in 2017," and "After the loan contract was written in 2017, interest of 3% per month was repaid via bank transfer from the eldest daughter, and from 2019, when she entered graduate school, interest of 2% per year has been received." They further stated, "Since the promissory note was written at the time of the loan and interest has been repaid accordingly, this is not a case of gift tax evasion."

This content was produced with the assistance of AI translation services.