Soyoung Lee: "Gift Tax Paid on Mother's Lease Deposit... Was Not Aware in Advance"

Controversy Over Hongje-dong Apartment Gap Investment
"No Profit from Price Increase Has Been Realized"

Soyoung Lee, nominee for Minister of SMEs and Startups, stated that she recently paid gift tax on about 200 million won in financial support that she and her spouse provided while helping her mother secure a lease deposit. Regarding the apartment in Hongje-dong, Seodaemun-gu, Seoul, which became the subject of controversy over its status as a "non-residential single home," she explained, "There has been no realized profit from (market) price gains. The facts are different from the definition of gap investment."

On the 15th, during a confirmation hearing of the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee, Lee responded to Choi Sujin, a lawmaker from the People Power Party, who asked whether Lee had repaid about 99 million won and her spouse had provided approximately 220 million won as a loan to help prepare her mother’s lease deposit in 2022. Lee answered, "That is correct," and further explained, "I did not realize in advance that it would be subject to gift tax. At the time, I considered it support for housing and living expenses."

Soyoung Lee, nominee for Minister of SMEs and Startups, attends the confirmation hearing held at the National Assembly on the 15th and delivers an opening statement. 2026.09.15 Photo by Dongju Yoon

When Assemblywoman Choi pointed out, "Is it reasonable for the general public to view providing 200 million won in one go as living expenses?" Lee responded, "It was not given all at once; my spouse directly wired the funds to the landlord. I did not think of it as a gift to my mother."

Assemblywoman Choi then raised the issue of Lee’s non-residency at her Hongje-dong apartment. According to Choi, Lee purchased the apartment for 490 million won in February 2016, lived there for four years, but has not resided there for more than seven years after entering the National Assembly.

Choi argued that as a former Democratic Party lawmaker who had advocated increased taxes and stricter regulation for so-called "speculative gap investment" in long-held, non-residential single homes, Lee’s apartment ownership directly contradicts the current government and ruling party’s real estate policy stance.

Choi pointed out that the current market price of the apartment is about 990 million won, which implies an expected profit of approximately 500 million won, and raised suspicions of gap investment. Lee replied, "I take the criticism seriously and will examine such matters more thoroughly going forward," but reiterated, "No sale or realized profit has taken place."

This content was produced with the assistance of AI translation services.