Handing Over 700 Million Won to a Nephew? Controversy Surrounding 'Aunt and Uncle Chance'

[Anchor]

Earlier, we reported that Defense Minister nominee Kang Shin-chul omitted an apartment commercial building purchased by his son from his 인사청문자료 (confirmation hearing documents). It has been revealed that the nominee's son in his 20s borrowed over 700 million won to buy the property, and the lenders were none other than his aunt and uncle.

Reporter Go Jeong-hyeon has the details.

[Reporter]

The apartment commercial building in Yangji Village, Seongnam, Gyeonggi Province, was purchased by the son of Defense Minister nominee Kang Shin-chul for 700 million won on June 30.

After it was discovered that documents related to this commercial purchase were omitted from the property declaration submitted to the National Assembly for the confirmation hearing, Kang's side submitted two promissory notes showing that Kang's son, born in 1996, borrowed a total of 715.5 million won from two individuals to buy the property.

On the 7th, Kang's side declined to reveal the identities of the lenders, citing privacy reasons. However, as verified yesterday by Reform Party lawmaker Chun Ha-ram, the lenders turned out to be the nominee's sister-in-law and her husband—the son's aunt and uncle.

Notably, the son borrowed 500 million won from his aunt at an annual interest rate of 4.6%, and 215.5 million won interest-free from his uncle. This amount appears to take into consideration roughly 217 million won, which is the maximum amount that can be borrowed interest-free between individuals under tax laws.

This is because if the interest-free loan amount is larger, it is regarded as a gift, requiring gift taxes to be paid.

Lawmaker Chun criticized the arrangement, saying, "What aunt and uncle would readily lend 700 million won to a nephew who has only been employed for a year?" He added, "It is practically a meticulously planned family gift disguised as a loan, or an 'aunt and uncle chance.'"

Kang's side denied allegations of a disguised gift, stating, "It is a legally executed debt between private individuals," and explained that "the nominee's son is properly paying back both the principal and interest."

However, they did not provide a specific response to questions regarding whether the loan amount was split to evade gift taxes.

(Video reporting: Shin Dong-hwan, Kim Yong-woo | Video editing: Nam Il | Design: Seo Seung-hyun)

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