Supreme Court nominee lived in Gangnam apartment under sublease for 350 million won deposit despite 1.95 billion won market value, lawmaker says

Supreme Court nominee Kim Seong-su lived in a Seoul Gangnam apartment with a reported market deposit of 1.95 billion won while paying a related party a deposit of 350 million won, according to documents obtained by opposition lawmaker Joo Jin-woo’s office. The arrangement has prompted allegations that he used a sublease to occupy the apartment at an unusually low cost.

The documents show that Kim signed a sublease with his brother-in-law in May 2023 for the Dogok Rexle apartment in Gangnam District. The contract required a 350 million won deposit and monthly rent of 800,000 won. Kim’s brother-in-law had previously leased the apartment from its actual owner for 1.5225 billion won before subletting it to Kim.

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He appears to have received substantial financial benefits from his brother-in-law and other related parties after living in Gangnam apartments for 15 years while continuing to pay a deposit of 350 million won or less. The difference from market rental prices is subject to gift tax under the law.

Property records, resident-registration data and Kim’s reported assets obtained by Joo’s office indicate that Kim previously lived for 10 years, from February 2011 to June 2021, in an apartment in Yeoksam owned by his brother-in-law. Kim reported the same 350 million won rental deposit from 2018 onward. Joo’s office argues that the deposit originally entrusted to the brother-in-law for the Yeoksam residence was carried over into the Dogok Rexle sublease.

Joo said Kim appeared to have paid 350 million won or less for a Gangnam apartment for 15 years, describing the difference from market rental prices as a possible benefit from a related party. He also said the difference could be subject to gift tax. Joo separately accused President Lee Jae-myung of selecting Kim after rejecting another nominee and warned that pressing ahead with a nominee facing tax-evasion allegations would damage the government’s moral standing. The allegations were presented by Joo and his office, and the material does not include Kim’s response.

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Lee Jae-myung is shopping for a Supreme Court justice who will make his trial go away, rejected nominee Son Bong-ki and chose only Kim. If the government pushes through Kim, who faces serious allegations of real-estate-related tax evasion, it will deal a fatal blow to the administration’s moral standing.