By Chung Min-uck
Ahn Cheol-soo, an independent presidential candidate, popular for his clean image, is facing a setback over alleged tax evasion in a real estate purchase.
He immediately acknowledged and apologized Thursday for his wife’s avoidance of paying due taxes, but political watchers say the case will have a negative impact on his bid.
Kim Mi-kyung, Ahn’s wife and a professor at Seoul National University, allegedly underreported the price of the apartment in Munjeong-dong, eastern Seoul, which was bought in her name, to a local tax office in 2001.
“It will deal a blow to Ahn’s bid though these kinds of tax evasion cases were prevalent back then,” said Shin Yul, a political science professor at Myongji University in Seoul. “Given the hitherto righteous and clean image the public has of Ahn, the incident is likely to hurt him.”
“Ahn’s ratings will stop rising following this,” said Yoon Hee-woong, the chief researcher of Korea Society Opinion Institute. “A sharp drop is likely if more irregularities are discovered in the future.”
Ahn’s credibility will also be in doubt as he said in a recent book that the government should “impose harsh penalties on tax evaders” and regarded it as the most effective way of raising taxes.
The novice politician is also being accused of purchasing an apartment in a redevelopment area in Sadang-dong, southern Seoul, in 1988 before the apartments were reconstructed. Residents who did not want to move out clashed with developers over the redevelopment plan.
Critics also suspect Ahn was engaged in a real estate speculation buying a one-third stake in another redevelopment area in Yeoksam-dong, southern Seoul.
“Eventually Rep. Moon Jae-in of the main opposition Democratic Untied Party (DUP) will be the beneficiary of Ahn’s fall,” Shin said. “Moon will gain the upper hand in negotiations of having a unified opposition candidate.”
DUP insiders expect moderate voters to shift their support to the DUP following the allegations.
“The cleaner one’s image is, the more vulnerable they are when these incidents occur,” said the professor. “I think personally unfavorable incidents will begin to blow up one after another, hurting Ahn’s credibility.”
Meanwhile, Keum Tae-seop, a lawyer and chief director of Ahn’s camp, raised a question Thursday on how the media acquired document of Ahn’s real estate purchase, signaling someone in the political circle has pulled strings behind the scenes.
“The document revealed to the media can only be acquired by the buyer himself or with his consent,” said Keum. “Ahn and his wife have never sought to issue the document since the purchase.”
Some claim it is harsh to blame Ahn for the tax evasion as regulations for reporting details on real estate purchases to local tax offices were not detailed back then.
Korea Tax, a taxpayers’ alliance, said in a statement, Thursday. “Back then tax payers thought of it as a legal way of saving tax. If some call it illegal, the fault is with the government for incomplete lawmaking.”