Firm says it failed to update its registered address after relocating offices

Lee So-young, nominee for minister of SMEs and Startups, speaks to reporters after a meeting with startup and venture industry groups at the Korea Venture Business Association in Guro-gu, Seoul, on Thursday.
Lee So-young, nominee for minister of SMEs and Startups, speaks to reporters after a meeting with startup and venture industry groups at the Korea Venture Business Association in Guro-gu, Seoul, on Thursday.

A former Seoul city council member has announced plans to file a police complaint against Lee So-young, nominee for minister of SMEs and Startups, over allegations that she paid about 70 million won ($52,300) in legislative consulting fees to a firm whose registered corporate address turned out to be vacant.

Lee Jong-bae, a former Seoul Metropolitan Council member from the People Power Party, said Sunday he would file a complaint with the Seoul Metropolitan Police Agency accusing the nominee of violating the Political Funds Act.

At the heart of the allegations is the claim that Lee, while serving as a 21st National Assembly member from 2023, paid the consulting firm between 3.3 million and 11 million won per month under the name of "legislative activity consulting fees." The total paid is estimated at around 70 million won.

Lee reportedly explained that she had entrusted the firm with a range of ancillary tasks related to her legislative work on a blanket basis and had not received itemized receipts for individual activities.

"If the roughly 70 million won paid to the firm was for services that were never actually rendered, or if the fees were excessive, or if the money was spent on purposes unrelated to political activity, there are grounds for a Political Funds Act violation," Lee Jong-bae said.

He also called on the nominee to step down, citing a separate set of allegations surrounding her — including gap investment, tax evasion, political donations in exchange for a party candidacy nomination, and share-related conflict of interest — and urged investigators to "get to the truth through a thorough investigation."

The firm said it had been unable to update its registered corporate address due to cost issues when it relocated its office.

Lee's National Assembly confirmation hearing is scheduled for Tuesday.

Police are also investigating complaints filed against other nominees: Kim Seung-won, nominee for minister of justice, over allegations that he lobbied for approval of a COVID-19 clinical trial, and the nominee for minister of gender equality and family over separate allegations.


quq@heraldcorp.com