Ministerial nominee Lee So-young denies allegations over political donations and gift tax

Lee So-young, the nominee to lead South Korea’s Ministry of SMEs and Startups, pushed back against two controversies surrounding her family and political finances, saying both allegations distorted basic facts.

Speaking to reporters after visiting the Korea Federation of SMEs in Seoul on the 8th, Lee rejected claims that she had received political donations from people hoping to run in local elections in her constituency of Gwacheon and Uiwang, Gyeonggi Province. She said those identified by the opposition either lost after running in difficult districts or won party nominations through open primaries. She described another donor as a young politician who, with his spouse, had long worked on climate issues and maintained a policy connection with her.

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The claims did not even verify the basic facts.

According to a list of major donors obtained by the office of People Power Party lawmaker Yoon Han-hong from the National Election Commission, Lee received donations exceeding 3 million won from three people, including prospective candidates, after entering the 21st National Assembly in 2020. Critics questioned whether the donations were linked to nominations. Lee called the allegations “claims that did not even verify the basic facts.”

Lee also addressed a tax controversy involving an interest-free loan from her husband to her mother for a rental deposit. She said her mother, who lives alone in Uiwang, lacked sufficient funds to find a home, and that the support fell within expenses for a dependent that tax law can exempt under ordinary social standards. The home is a multi-family villa of less than 20 pyeong, with a current deposit of 270 million won. Lee said her mother owns no real estate and has no income, while Lee is her only child. She said she planned to file and pay the gift tax to prevent the issue from spreading, although she regarded the assistance as fulfilling a child’s duty to support a parent.

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I think that an only child solving the housing problem of an economically struggling mother is the fulfillment of a duty to support a parent.

The controversy arose after lawmaker Choi Soo-jin said Lee’s husband had lent her mother 223.1 million won without a written loan agreement or gift-tax payment. Under the law, interest on an interest-free loan can count as a taxable gift when the calculated amount reaches at least 10 million won. Applied to the loan, the annual interest equivalent would be about 10.26 million won.

During the same visit, Lee said she would seek to measure the total burden on self-employed business owners and build a policy roadmap. She said businesses pay about 6,000 won out of a 20,000-won order fee to delivery apps under various charges. She also argued that spending public funds on delivery coupons through public delivery apps was inefficient and said she would seek more effective budget use if appointed.

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Even with the same fiscal input, it is desirable to spend it in a way that can produce 10 to 20 times the effect.