Qualification Questioned
Cabinet Nominees Hit by Property Speculation Allegations
Wealth is not taboo in a capitalist society. But when it comes to personal assets of top government officials, wealth is still something to be shunned in South Korea. This is because people ask a question: How have many Cabinet nominees become so rich? Prime Minister-nominee Han Seung-soo and 15 other nominees for President-elect Lee Myung-bak's first Cabinet face allegations about property speculation, tax evasion and duel citizenship.
It might be natural that suspicions are growing over the nominees' accumulation of wealth after they reported a list of their personal assets which average 3.9 billion won ($4.1 million). No one can find fault with rich nominees if they have made big money in a legitimate manner. Twelve of the minister-nominees are multiple homeowners, whose apartments and houses are located in the affluent districts of southern Seoul. Several of them are in possession of three to five homes.
The public envies the rich nominees and at the same time casts a suspicious eye on them as they are under attack for obtaining their properties by speculative buying. The combination of envy and suspicion is not a new phenomenon. South Koreans feel similar feelings whenever every new government announces the Cabinet lineup. But this time, their feelings are special because home and property prices have skyrocketed during the last five years.
Many people expect politicians, lawmakers, bureaucrats and others in leading positions in society to refrain from property speculation. Particularly, those who do not own their own homes cannot but feel a sense of deprivation because the government of outgoing President Roh Moo-hyun has failed to combat speculation. Incoming President Lee might ignore this public sentiment since the former CEO of Hyundai Engineering and Construction has amassed an estimated 35.3 billion won.
Lawmakers grilled Prime Minister-nominee Han during the Feb. 20-21 confirmation hearing at the National Assembly over the details of his wealth estimated at 2.1 billion won. Han purchased an apartment in southern Seoul during a property and development boom in the late 1970s and early 1980s. Some legislators raised speculation suspicions over the purchase. They also questioned him over the purchase of an expensive apartment by his son who stayed abroad for study. Han also faced allegations about evasion of gift taxes and an exaggerated academic career.
Yu In-chon, nominated for culture and tourism minister, reported 14 billion won in assets, the largest among the Cabinet nominees. Speculation suspicions are mounting over his ownership of four homes in Seoul and other properties in Gyeonggi Province and on Jeju Island. Lee Choon-ho, who was chosen as minister of gender equality and family, also faces allegations about speculation as she owns five homes.
Confirmation hearings on the nominees, except Han, are scheduled for Feb. 27-28. Lawmakers are obliged to make the utmost effort to thoroughly check if the nominees are qualified for a Cabinet post. They should ferret out disqualifiers in a bid to ensure the integrity of the first ministers of the incoming Lee Myung-bak government.