Huge Price Gap between Market Price and Contract Price

President Roh Moo-hyun is the true owner of 29,000 sq. meters of woodlands in Jinyoung Village, South Gyeongsang Province, Kim Ki-ho, chairman of Kimhae international country club said. The current market price of this property is said to be more than 200 million won.

Kim Ki-ho asserts that he sold the land for 250 million won in 1994 while Baek Seung-taek, the owner in the register book, claims that he paid about 30 million won for the land in 1996. However, the fact that the current market price is more than 200 million gives more credence to Kim’s assertions.

A realtor familiar with land prices in the area explains that in 1996, land prices in Jinyoung Village had already risen. He said: "At that time, a rice field of 3.3 sq. meters was put on the market for more than 200,000 won, a woodland of the same size might have been traded at more than 20,000 won." According to his explanation, at that time the sale price of the woodland might have been about 200 million won.

When it comes to the 29,560,000 won, the price recorded in the contract between Mr. Baek and Mr. Kim, the realtor said, "This price could be declared value. So it seems that there is a huge gap between the price in the contract and the then market price."

There is also controversy over a recording in which Kim Ki-ho testified to suspicions surrounding the property purchase by Roh Geon-pyeong, Roh Moo-hyun`s older brother. Regarding this tape, Rep. Kim Moon-soo of the opposition Grand National Party (GNP) said, "Chairman Kim came to GNP headquarters in person though he is not a party member. In addition, during the testimony he was very clear and what he claims made sense. Therefore his claims are highly likely to be true."

Meanwhile, President Roh Moo-hyun is scheduled to hold a press conference at Cheong Wa Dae to talk about the real estate scandals involving his older brother at 10:00 a.m. on May 28.

At the press conference, Roh is expected to explain how his brother purchased and sold land plots in Jinyoung Village, Gimhae City and Guzora Village, Geoje City and how the debts of Jangsucheon, a spring water company, were paid and to express regret for causing a sense of instability among the public.

And it is said that the president will also explain the scandal involving his key aide, Ahn Hee-jung, and Nara Investment Banking Corp.

In a briefing on May 27, Cheong Wa Dae spokesman Yoon Tai-young said, "At first we decided that we didn’t need to respond because those questions had been already raised around the presidential election last year. But now there are some new issues. The president will therefore focus on finding the truth."

Earlier, presidential secretary for civil affairs Moon Jae-in had reported to the president the result of his office’s own investigation into real estate suspicions involving his older brother, raised by the media and the opposition party.

manman@donga.com jnghn@donga.com