By Jung Sung-ki
The ruling and opposition parties questioned knowledge and economy minister-designate Choi Joong-kyung in a National Assembly confirmation hearing Tuesday over allegations of real estate speculation and tax evasion.
Whether or not his exchange rate policy was successful was also a main topic during the one-day hearing. Choi served as a vice minister of strategy and finance and as a senior presidential secretary for economic affairs.
Lawmakers of the main opposition Democratic Party (DP) claimed that Choi earned substantial profits from real estate speculation.
According to DP legislators, Choi’s wife bought land in North Chungcheong Province in 1988 that was estimated to cost about 49 million won and was designated as a state development site three months afterwards.
As a result, Choi received about 287 million won from the government in compensation, more than six times the land’s original price, they argued.
Choi’s wife and father-in-law also purchased Green Belt farmland in Yuseong, Daejeon, in 1988. Again, Choi earned profits of 15 times the original purchase price, as the government decided to expropriate the land for road construction last year, DP lawmakers said.
“Choi and his wife don’t have any relatives in Yuseong. So the purchase of the farmland is seen as real estate speculation to earn huge profits illegally,” Rep. Cho Kyung-tae of the DP said.
Other DP members raised suspicions about Choi’s real estate speculation, citing the fact that Choi’s wife and father-in-law were not even engaged in farming of the land.
Choi said he had not been aware of his wife’s land purchase until 1993, when he first reported his assets to the government as a high-ranking public official.
Citing a 1996 revision of the farmland law, which allows the cultivation by proxy, he also denied the allegations of real estate speculation.
In addition, the opposition party claimed Choi had defaulted on his property taxes amounting to some 2.25 million won in 2006 and didn’t pay them until the following year.
Choi apologized for “neglecting” the liability to pay taxes.
The nominee is also suspected of having received extra financial support from the government to cover school expenses for his son while he was serving as ambassador to the Philippines and as a presidential secretary for economic affairs.
He is said to have received about $24,000 from the government between October 2008 and July 2010.
An envoy is supposed to receive state support to send his or her children to schools abroad. The DP claims, however, Choi was serving as a presidential aide between April and July last year, so he received additional funds for his son’s schooling even after he retired as envoy to the Philippines.
Choi claimed he legitimately received state support.
The ruling Grand National Party focused on Choi’s qualifications to become the new economy minister and his policies to cope with high oil prices, save energy and foster small and medium-sized companies.
Choi answered that he will actively request the finance minister to cut oil taxes if the livelihood of the working class becomes more difficult.
The National Assembly will hold a meeting Wednesday to vote on whether to approve the nomination of Choi and Choung Byoung-gug designated as culture minister.