"If He'd Waited Three More Days, He Would Have Paid 2.4 Billion Won More"...Chong Yongjin Earns 9.3 Billion Won Profit from Hannam-dong House Sale

Chong Yongjin of Shinsegae Sells Hannam-dong House for 25.5 Billion Won
Three Days Before New Capital Gains Tax Surcharge on Multiple Homeowners Takes Effect

Chong Yongjin, Chairman of Shinsegae Group, reportedly sold his detached house in Hannam-dong, Yongsan-gu, Seoul for 25.5 billion won, earning more than 9.3 billion won in capital gains. Notably, he made the sale three days before a new capital gains tax surcharge on owners of multiple homes took effect, reducing his capital gains tax by approximately 2.4 billion won.

According to industry sources on May 13, Chairman Chong sold his detached house to Booyoung Housing for 25.5 billion won on May 6, and completed the ownership transfer registration on May 8.

The property is a detached house with one basement floor and two above-ground floors. Chairman Chong acquired it from his mother, Lee Myunghee, Group Chairwoman of Shinsegae Group, in September 2018 for approximately 16.1 billion won.

Previously, Chairwoman Lee had purchased the house from Yoon Sukgeum, Chairman of Woongjin Group, in April 2013 for 13 billion won. She held the property for five years before selling it to her son, Chairman Chong.

Chairman Chong is also known to be a two-homeowner, as he owns another detached house in Baekhyeon-dong, Bundang-gu, Seongnam-si, Gyeonggi Province.

It is estimated that Chairman Chong paid about 3.6 billion won in capital gains tax for this sale. If he had sold the property after the grace period for the tax surcharge ended, the capital gains tax would have increased to around 6 billion won. Thus, by selling early, he saved approximately 2.4 billion won in taxes.

Meanwhile, Booyoung Housing is reportedly reviewing ways to utilize the newly acquired residential site.