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Lee Suk-yeon, a patent court judge running to become a Supreme Court Justice (Supreme Court) |
Supreme Court justice nominee Lee Suk-yeon’s daughter was found to have made a profit 63 times higher than her original stock investment by selling her shares to her father, according to data released Tuesday.
According to official documents Lee submitted to Rep. Huh Young of the Democratic Party, Lee’s daughter, identified by her last name Cho, sold 400 stock shares of a cosmetics R&D firm to her father for 385 million won ($277,636) in May 2023. The 400 shares were part of a total of 800 shares that Cho purchased in 2017 when she was 19 for 12 million won.
Regarding Cho’s profits being 63 times higher than her original investment, Lee stated that the price of the shares was in line with the market price.
Of the 12 million won, Cho was gifted 9 million won by her father. Cho additionally paid the capital gains tax of around 78 million won with money also inherited from her father, as well as the gift tax for inheritance.
Though these transactions are not unlawful, Cho and her father’s actions sparked criticism as Cho had only put in 3 million won of her personal money to earn up to 385 million won.
“The upper class may argue that these conducts are routine and pose no legal problems, but it certainly causes ordinary people to feel alienated or out of harmony,” added Rep. Huh.
Lee had also initially confessed that the profit Cho made from her investments amounted up to 220 million won, which is a lot less compared to data released by Rep. Huh on Tuesday. Regarding the disparity, Lee confessed that there had been a misunderstanding and apologized and added that Cho had additional debts she owed to her father.
Back in August 2022, it was found that Cho had passed on shares amounting up to 220 million won to pay up her debts to her father after purchasing a villa in Seoul. According to Lee, Cho paid other debts she owed to her father in May 2023, hence the differences in profit numbers.
“My children have earned a lot of property for their age and career, which I understand may have left the people with confusion and suspicion,” explained the candidate in an official statement. She added that both the candidate and her husband have paid their taxes in a responsible manner while providing financial support for her daughter.
Meanwhile, the parliamentary confirmation hearing for Lee is scheduled to be held on Thursday.
