Yoon Reveals Contract and Bank Statements... What Is the Suspicion of 'Under-the-Table Contract' About?

Yoon's Side Releases Sales Contract, "No Down Contract Created... Only Received 1.9 Billion KRW"
Open Sympathy TV: "Response Typical of Someone Who Doesn't Even Know What a Subscription Savings Account Is"
Yoon's Side Releases Bank Statement, "Absurd... No Reason Due to 45 Years of Long-Term Residence"
Down Contracts Are 'Illegal'... Subject to Criminal Punishment

Former Prosecutor General Yoon Seok-yeol, a presidential candidate from the People Power Party, is announcing foreign and security policy pledges at the People Power Party Central Office in Yeouido, Seoul, on the 22nd. [Image source=Yonhap News]

[Asia Economy Reporter Kim Soyoung] The YouTube channel 'Yeollin Gonggam TV' has raised suspicions regarding a real estate transaction between Yoon Kijung, the father of Yoon Seokyeol, the People Power Party's presidential candidate, and Kim Myungok (60), the sister of Kim Manbae, the major shareholder of Hwacheon Daeyu Asset Management, leading to a sharp confrontation between the two sides.

On the 28th, Yeollin Gonggam TV suggested bribery suspicions and the possibility of a down contract during the sales process between them. Yeollin Gonggam TV stated, "The owner of Cheonhwa Dongin, who pocketed hundreds of billions of won in dividends from the Seongnam Daejang-dong development project, and the father of former Prosecutor General Yoon engaged in a real estate transaction," adding, "July 2019 was when former Prosecutor General Yoon was nominated as Prosecutor General." They also revealed, "The house is about 95 pyeong, with a market price of around 3.3 to 3.5 billion won."

In response, on the 29th, Yoon's campaign team released the sales contract from that time, rebutting, "As stated yesterday, due to the health issues of former Prosecutor General Yoon's father, the property was listed at 20 million won per pyeong at a real estate agency, and the contract was made without knowing the personal details of the person brought by the agent."

They further explained, "The buyer, Mr. Kim, was completely unknown at the time in 2019, with no reason to mention any investment in Cheonhwa Dongin or personal family relations," adding, "There was no down contract, and only 1.9 billion won was received as the purchase price." They also noted, "For reference, the brokerage fee listed in the sales contract was reduced, so a lower brokerage fee than stated in the contract was paid."

Yoon Seok-yeol camp released the sales contract of the house in Yeonhui-dong owned by former Prosecutor General Yoon's father on the 29th. Photo by Yoon Seok-yeol camp

In response, Yeollin Gonggam TV criticized, "The explanation from Yoon Seokyeol's camp is false," saying, "It's too inconsistent. A sales contract in a situation suspected of a down contract? This is a response from someone who doesn't even know what a subscription savings account is."

They pointed out, "Although they claim the property was sold quickly at a price lower than the market due to the father's health issues, the dates on the certified copy of the register show that before the sale of the detached house in Yeonhui-dong, the full balance was already paid and a new apartment to move into was purchased, so there was no reason for a quick sale due to urgent funds."

In response, Choi Jihyung, chief deputy spokesperson for former Prosecutor General Yoon's campaign, denied the suspicions outright by releasing bank transaction details. He said, "After listing the house at the real estate agency, about three prospective buyers came to view the house, and the contract was made," adding, "During the sales process, 2 billion won was initially requested but lowered once to 1.9 billion won, and buyer Kim Myungok asked for a further 100 million won reduction, which was refused. If it were a bribe, there would be no reason to negotiate the price."

He continued, "According to the real estate agency's market survey at the time, the price was formed at about 23 to 25 million won per pyeong, so the property was listed slightly below market price," emphasizing, "Yeollin Gonggam TV claims the market price was 30 to 35 million won per pyeong, which does not match the situation at all."

He added, "At first, they said it was a 'bribe' because it was bought at a price higher than market price, but now that it has been revealed that the sale was at a price lower than market price, they are even raising suspicions of a down contract, which is absurd," stating, "Down contracts at prices lower than market price are made to avoid taxes, but having lived there for 45 years, there was no reason for that."

Bank statement disclosed by Yoon Seok-yeol's campaign on the 29th. / Photo by Yoon Seok-yeol Campaign Provided

A down contract, which is at the center of this dispute, refers to a contract where the seller and buyer agree to record a false price lower than the actual transaction price. Through this, the seller can reduce capital gains tax by lowering the capital gain, and the buyer can reduce acquisition and registration license taxes by lowering the acquisition price, so it is mainly done to reduce taxes.

However, this is clearly illegal and subject to criminal penalties. If a down contract is detected, both buyer and seller are fined, and the real estate agent faces penalties such as license suspension and fines.

According to the Real Estate Transaction Reporting Act, sellers and buyers who violate the obligation to report actual transaction prices are subject to fines up to three times the acquisition tax. If rights to acquire real estate such as pre-sale or occupancy rights are traded, a fine of up to 5% of the acquisition price of those rights is imposed. Additionally, unpaid acquisition tax and capital gains tax must be paid, along with a 40% penalty tax for false reporting and a 10.95% annual interest penalty for late payment.

If a licensed real estate agent prepares a down contract, the agent is subject to a fine up to three times the acquisition tax under the Licensed Real Estate Agents Act and may face license suspension, cancellation, or business suspension.

Meanwhile, according to a JTBC exclusive report on the 29th, the buyer, Mr. Kim, claimed through his family, "At the time of the contract, I did not know it was the house of former Prosecutor General Yoon's father."

Regarding suspicions that the sale was arranged by Kim Manbae, he reportedly denied, saying, "The contract was made through a real estate agency, and the purchase funds were obtained through a bank loan."

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