Han Sung-sook faces 'low-price rental' allegations again; opposition claims 'acquaintance rented luxury officetel at 1/3 market rate'

Han Sung-sook, the nominee for South Korean prime minister, is embroiled in a fresh controversy surrounding allegations of providing a luxury officetel to an acquaintance at a price far below market value. This incident follows previous accusations of preferential rental agreements involving Han's family members, intensifying scrutiny of her financial dealings.

According to data obtained by Kim Hee-jung, a member of the People Power Party, Han acquired a unit in the 'Luca 831' officetel in Yeoksam-dong, Gangnam District, Seoul, for 2.07 billion won in 2022. Subsequently, Han entered into a lease agreement with S Corporation, effective April 1st of this year, stipulating a deposit of 10 million won and a monthly rent of 1.5 million won.

The core of the controversy lies in the identity of S Corporation's CEO, identified as Mr. A, who is reportedly a close acquaintance of Han. The deposit and monthly rent are significantly lower than the prevailing market rates for similar properties in the area, which are estimated to be between 3 to 4 million won per month. Mr. A currently operates a hair salon in Cheongdam-dong and had previously posted a photo with Han on social media in 2021.

Kim Hee-jung has called for Mr. A to be summoned to Han's parliamentary confirmation hearing, arguing that renting a high-priced officetel at one-third of the market rate to a connected individual goes beyond a simple personal transaction. Kim characterized the alleged arrangement as a clear instance of providing illegal benefits and a method to evade taxes by concealing income sources from tax authorities.

This is not the first time Han has faced such allegations. During her confirmation hearing for Minister of SMEs and Startups last year, she was accused of providing a hanok house in Samcheong-dong, Seoul, to her brother for a monthly rent of 200,000 won without a deposit, sparking suspicions of illegal benefits. Similar allegations also surfaced regarding the rental of part of a house in Jongno-gu, Seoul, to her sister at a below-market rate. The repeated accusations cast a shadow over Han's nomination for the prime ministerial post.

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Renting a high-priced officetel at one-third of the market price to a specially related person like Mr. A goes beyond a simple transaction between individuals and is a clear provision of illegal benefits.