Lee So-young faces gift tax evasion allegations

Lee So-young, the nominee for Minister of SMEs and Startups, is facing allegations of gift tax evasion involving her mother. According to an analysis by People Power Party lawmaker Choi Su-jin on February 7, Lee’s husband reportedly provided approximately 223 million won to his mother-in-law in 2022 to assist with a jeonse (lump-sum deposit) lease without a formal loan agreement or interest.

Under South Korean inheritance and gift tax laws, interest-free loans between related parties are subject to taxation if the deemed interest exceeds a certain threshold. Lawmaker Choi noted that based on the statutory interest rate of 4.6 percent, the annual interest amount for this loan exceeds the tax-free limit, potentially resulting in an annual gift tax evasion of approximately 1 million won by the nominee’s mother.

Choi emphasized that since the nominee and her husband are legal experts formerly with Kim & Chang, they likely understood the tax implications. The lawmaker called for a sincere explanation, noting that tax issues involving the family of a minister candidate could undermine policy credibility for small business owners and entrepreneurs.