Controversy Over First Lady`s Apartment Ownership

Cheong Wa Dae acknowledged Friday for the first time that First Lady Kwan Yang-sook had ownership of an apartment unit for installment sale. In addition, it has been confirmed that president Roh omitted the First Lady`s ownership of the apartment when then lawmaker Roh reported his assets to the authorities on Sept 18, 1998, which constitutes a violation of ethic codes of government officials.

Presidential spokesman Yoon Tae-young said, ˝First Lady Kwan sold a piece of land in Namgu, Busan to Jangback Construction for about 67 million won in July 1996. Under the contract, she was promised to receive the rest of money except 6,700,000 won she had already received as down payment when the company would have finished selling all apartment units. However, the company later offered the First Lady ownership of an apartment unit instead of the rest of money she was promised to be paid, when the sale of its apartment units were sluggish.˝

˝It is true that First Lady Kwan’s apartment ownership was left out when the first family`s asset was registered in 1998. However, it was a mistake made by officials in charge of the job at that time,˝ the presidential spokesman explained.

˝An allegation is groundless that the ownership of the apartment in question was handed over to another person before registration because the first lady had received the apartment ownership as security for the rest of money she had to be paid by the construction company. Therefore, the transaction doesn`t constitute a violation of laws regarding the promotion of housing construction,˝ he added.

˝There was nothing wrong with the transaction of the ownership of the apartment in question because it was made after the resale of a house for installment sale was legally allowed,˝ he said.

Cheong Wa Dae said that it would consider filing a lawsuit against the Dong-A daily which had reported the suspicious apartment ownership transaction involving First Lady Kwan Yang-sook, judging that the daily printed the article with ill intention.

Meanwhile, Grand National Party lawmaker Kim Moon-soo, who had first raised a question over the apartment transaction, held a press conference in that day and urged the president to come clean about all the suspicions regarding his asset, which the lawmaker claimed the president has hidden by doctoring related documents. The lawmaker criticized the president for filing a lawsuit against him and some newspaper companies as part of an attempt to cover up his wrongdoings.

Jeong-Hun Kim Min-Hyuk Park jnghn@donga.com mhpark@donga.com