Han Seong-sook, former CEO of Naver. (Photo: Naver)

 

 

[Alpha Biz= Kim Jisun] On July 15, Han Seong-sook, the nominee for Minister of SMEs and Startups and former CEO of Naver, pledged to pay the gift tax for allegedly allowing her 80-year-old mother to live rent-free in her apartment—an arrangement that has sparked controversy over potential tax evasion.



At a confirmation hearing held by the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee, Democratic Party lawmaker Heo Sung-moo raised questions about Han’s financial arrangements with her family, suggesting they may constitute a form of disguised gift.



“Though you’ve supported your family like a traditional eldest daughter, now as a public figure, you’re facing criticism for not charging your mother rent,” Heo remarked.



In response, Han acknowledged the public's concerns and announced that she would resolve the matter by paying the necessary taxes. “This has made me realize the gap between public expectations and my actions as a public official,” she said. “I will take steps to properly handle the relevant gift tax.”



Han explained that she intends to fund the tax payment by selling her Naver stock and shares held by her mother, which were inherited from her late father.



Critics from the opposition party have accused Han of evading taxes by allegedly granting her mother and sister free use of a valuable apartment in Jamsil, Seoul, without reporting the arrangement. According to People Power Party lawmaker Kim Sung-won, Han’s family should have paid approximately 14 million KRW (about $10,000) in gift taxes based on the property’s estimated value of 1.7 billion KRW ($1.3 million).



Han had previously stated that she was unaware that not charging her mother rent could trigger gift tax obligations. “My mother is over 80 years old with no income,” she said. “I didn’t realize that our living arrangement might be seen as a taxable transaction.”

 

 

 

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