hankyoreh

lawmaker of the Democratic Party

Controversy continues over the Prime Minister-designate Chung Un-chan’s testimony regarding possible tax evasion and the source of 320 million Won (260,000 dollars) he has among his financial assets. The National Tax Services (NTS) records submitted to Democratic Party Lawmaker Kang Un-tae show that Chung’s testimony about an increase in the value of his property is false.

Lawmaker Kang has suggested that Chung may have hidden a secondary source of income since his savings increased 320 million Won from 2006 through 2008 since his total income reported (910 million Won) has been less than his total expenditures (943 million Won).

In response to questions about this difference in income and expenses, Chung explained during the confirmation hearing on Sept. 22 that according to his calculations, his total income had exceeded his total expenditures over the past three years by 459 million Won. The main difference between the two statements is in the area of factoring in business expenses. Lawmaker Kang suggested that Chung reported 228 million Won in business expenses to the NTS, while Chung said that he had only reported 7 million Won.

NTS’s written response shows that Lawmaker Kang is correct. NTS wrote, “Prime Minister-designate Chung reported 228 million Won in business expenses for 2006 through 2008.”

Chung, however, also gave a different figure to the CPA to whom Grand National Party (GNP) lawmakers requests for clarification in the controversy on Sep. 25. Chung wrote down that his business expenses totaled 35 million Won. This seems to indicate that he may have intentionally given false testimony during the confirmation hearing on Sep. 22.

At the confirmation hearing Kang also said, “Chung should be cited for giving false testimony because the explanation he gave on Sept. 22 was false.” Giving false testimony before the National Assembly is a crime that carries a punishment of one to ten years in prison.

GNP lawmakers, including Cha Myeong-jin, are attempting to protect Chung and are saying, “The explanation given on Sept. 22 was not a false testimony but rather an illusion.”

GNP lawmakers made the confirmation hearing report regarding Chung while DP lawmakers walked out of the confirmation hearing room. The nominee for prime minister in South Korea must obtain approval from a majority of the National Assembly, and the ruling GNP plans to adopt the confirmation hearing report during a National Assembly plenary session on Sept. 28.

Please direct questions or comments to [englishhani@hani.co.kr]