Ex-first lady's mother, brother appear for questioning over alleged evasion of development fees

Former first lady Kim Keon Hee's mother, Choi Eun-soon, left, and elder brother, Kim Jin-woo, appear at special counsel Min Joong-ki's office in central Seoul to undergo questioning over their alleged evasion of development fees, Tuesday. Yonhap

Former first lady Kim Keon Hee's mother and elder brother appeared before a special counsel team Tuesday to undergo questioning over their alleged evasion of development fees for an apartment construction project a decade ago.

Choi Eun-soon and Kim Jin-woo are suspects accused of causing losses to state coffers through their alleged evasion of development fees worth 1.75 billion won ($1.22 million) during the project to build an apartment complex in Yangpyeong, east of Seoul.

The two appeared at special counsel Min Joong-ki's office in central Seoul and entered without answering reporters' questions.

The apartment project was conducted from 2011 to 2016 and led by ESI&D, which Choi headed until 2014 before her son took over.

The company is suspected of falsifying documents to underreport its profits by exaggerating the construction costs of the 350-unit apartment complex despite having earned 80 billion won. The aim was allegedly to reduce the development fees it owed.

The Yangpyeong County government initially imposed a fee of 1.75 billion won in November 2016 but scrapped it completely in June 2017 following two complaints.

When allegations of preferential treatment arose ahead of the March 2022 presidential election, won by Kim's husband, Yoon Suk Yeol, the county government belatedly imposed a 187 million-won development fee on ESI&D in November 2021.

The case was investigated by the police, leading to the indictments of five people, including Kim Jin-woo. The former first lady, who once served as a director at ESI&D, and their mother were not charged.

Causing losses of more than 500 million won to the central or local government is punishable by life imprisonment or a prison term of at least five years.