Choi Jae-hyung Suspected of Evading 400 Million Won Interest Income Tax on Loan to Eldest Daughter... Daughter Says "It's My Fault"

A photo posted on the 15th by Ji-won, the eldest daughter of former Board of Audit and Inspection Chairman Choi Jae-hyung, on her operated 'Choi Jae-hyung's Daily Instagram'. Photo by Instagram screen capture.

[Asia Economy Reporter Heo Midam] Allegations have been raised that Choi Jae-hyung, former Auditor General and a presidential candidate from the People Power Party, did not pay the related income tax while lending several hundred million won and receiving interest for his eldest daughter's apartment purchase. In response, Choi's eldest daughter apologized, saying, "It is my fault."

On the afternoon of the 15th, Ji-won, Choi's eldest daughter, posted a message titled "I am sorry" on the Instagram account "Choi Jae-hyung's Daily Life."

Ji-won explained, "When purchasing the house, I could not get a loan, so I borrowed money from my mother and paid interest, and I was supposed to withhold tax, but due to my negligence, I did not pay attention to that."

She added, "It is my fault," and said, "I will be more meticulous in the future." Along with the post, she uploaded a photo showing herself and the couple, Choi and his wife, during her childhood.

Former Chairman of the Board of Audit and Inspection and presidential candidate of the People Power Party, Choi Jae-hyung. [Image source=Yonhap News]

Earlier, while serving as Auditor General last year, Choi reported bonds worth 400 million won under his wife's name in his property declaration. It is known that this was used for Ji-won's apartment purchase.

At that time, Choi's side explained that Ji-won could not get a loan, so he lent her the money and received interest at an annual rate of 2.75% into his spouse's account. They also stated that they received part of the principal, 80 million won, in two installments in March and May of this year.

Regarding this, Kim Yong-min, a member of the Democratic Party of Korea, wrote on his Facebook, "Complying with the constitutional duty to pay taxes is a natural responsibility as a presidential candidate," and urged, "Former Auditor General Choi should promptly disclose account transaction details and tax payment records if any, to clarify the suspicion of evading interest income tax."

Meanwhile, Choi's side confirmed the facts related to the interest income tax evasion suspicion last week and has completed voluntary reporting. It is also reported that they plan to pay the unpaid amount as soon as the holiday ends.

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