It was revealed that Lee Chang-yong, a candidate for governor of the Bank of Korea, made a so-called 'down contract' in 2002 when he traded a house in Sindang-dong, Jung-gu, Seoul, at a false price rather than the actual transaction price.
According to the real estate transaction details of Candidate Chang-yong Lee of the Bank of Korea obtained by SBS, the candidate Lee bought a house in Sindang-dong from his father-in-law Choi Mo for 500 million won in September 1998.
About four years later, in May 2002, this candidate sold the house to Mr. A, and the selling price was only 110 million won.
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If you look at the 'standard market price' that the National Tax Service uses as a standard when levying taxes, the standard market price of the house as of April 2002 amounted to 630 million won.
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If you look at the base market price and transaction history alone, you sold a house worth over 600 million won at a loss of around 500 million won.
This raises suspicions of a 'down contract' in that the seller and the buyer agreed to a contract at a false price rather than the actual transaction price.
If the transaction price is reported lower than the actual transaction price under the contract, the seller can reduce capital gains tax by reducing capital gains, and the buyer can reduce the acquisition tax by reducing the acquisition price.
Such a 'down contract' violates Article 3 of the Act on Real Estate Transaction Reporting, etc.
If the actual transaction price and the reported amount are reported differently, the transaction party may be subject to a fine of 2-5% of the actual transaction price.
In addition, you may be required to pay additional tax collection, penalties for non-faithfulness in reporting, and penalties for failure to pay.
In response, Bank of Korea candidate Lee Chang-yong acknowledged the 'down contract', but explained, "It was written at the request of the buyer, and it was a time when tax-saving practices were rampant."
The candidate's side also said, "At the time, I paid about 660,000 won in capital gains tax and paid taxes properly." .
This candidate was nominated for the new governor of the Bank of Korea on the 23rd of last month.
Recognized as an economist and financial expert, this candidate has served as Director of the International Monetary Fund for Asia and Pacific Affairs, Asian Development Bank ADB Chief Economist, and Vice Chairman of the Financial Services Commission.
In 2008, prior to the inauguration of President Lee Myung-bak, he also served as a member of the Economic Division of the 17th Presidential Transition Committee.