Supreme Court Nominee Accused of Using Brother-in-Law’s Favor to Rent Luxury Seoul Apartment Cheaply

A Supreme Court nominee lived in one of Seoul’s most expensive apartments under a rental arrangement with his brother-in-law that opposition lawmakers say may have concealed a taxable gift.

The lease obtained by the office of People Power Party lawmaker Joo Jin-woo shows that Kim Seong-su signed a sublease in May 2023 for the Dogok Rexle apartment in Gangnam. The terms required a 350 million won deposit and monthly rent of 800,000 won. Kim’s brother-in-law had leased the apartment from its owner for a 1.45 billion won jeonse deposit in March 2023, later raising it to 1.5225 billion won.

The sublease deposit was set at 750 million won. Kim transferred a 350 million won deposit he had placed when living for 10 years in another apartment owned by his brother-in-law, and paid the remaining 400 million won through monthly rent. A special clause in the original lease said the brother-in-law and Kim’s family would live together. Kim said the family had moved into the apartment in 2021 at his mother-in-law’s suggestion because she was concerned about her unmarried son-in-law. He said they had lived there together except for a two-month period in 2023.

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I am sorry

A realtor who had worked in the Dogok Rexle area for 13 years said subleases were rare in neighborhoods with expensive apartments because landlords faced greater risk when they did not deal directly with the occupant. The report said converting the 750 million won deposit to a 350 million won deposit and partial rent would normally produce monthly rent of about 1.83 million won, more than twice what Kim paid.

Tax expert Kim Kwang-jin said the transaction appeared to differ from market value by more than 30%, potentially making the difference subject to gift tax. Joo alleged the apartment’s current jeonse value was 1.95 billion won and called the arrangement clear grounds for gift-tax assessment. Kim said he recognized possible tax-law problems and that the arrangement did not meet public expectations. “I am sorry,” he said, adding that he would resolve the matter appropriately after the confirmation hearing.

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The current jeonse market price for Dogok Rexle is 1.95 billion won. It clearly falls under gift-tax assessment, and no actual payment record has been found