Congressman-Elect Kim to Sell His Firm
Former Diamond Bar Mayor Jay C. Kim, one of California’s 17 new members of Congress, said Monday he will sell his lucrative civil engineering business to avoid possible conflicts of interest.
“I actually have less than 5% federal contracts. But that isn’t the issue. Perception is the issue,” said Kim, 53, a Republican who is the first Korean-American elected to Congress. Kim’s 41st Congressional District covers portions of Los Angeles, Orange and San Bernardino counties.
Born in Korea, Kim came to the United States in 1961, attended USC, and founded Jaykim Engineering Inc. in 1977. The business, which has won government contracts for road, bridge, sewer and prison projects in California and other states, is worth an estimated $4 million, according to a recent appraisal, Kim said.
Kim owns 100% of the privately held corporation, serves as its president and last year drew a salary of $160,000 from the business, according to financial disclosure statements filed with the House clerk. Kim listed additional income of $75,000 from other business ventures, primarily real estate investments. He will earn $133,600 a year as a member of Congress.
Jaykim Engineering, in Diamond Bar, employs 130 people and has offices in San Diego, Sacramento, Phoenix, and Spokane, Wash.
There are no statutes or House rules that would require Kim or any other member-elect to sell private holdings upon taking office.
In fact, House rules generally give members wide latitude to vote on matters in which they have a potential financial interest. Only when the legislation would directly benefit that corporation alone would a member be advised to abstain from voting.
Kim said his company holds only one direct federal contract--an agreement with the Navy to oversee the cleanup of toxic wastes at Port Hueneme. But he said the firm works on many other jobs, either as a prime contractor or subcontractor, that could potentially involve federal aid.
One recent contract involves design of two maximum-security prisons in Southern California. And Kim’s company is part of a consortium of minority-owned firms hired to demolish buildings damaged in the Los Angeles riots.
“I’m a civil engineer, and a civil engineer is (involved in) most government projects. . . . (There is) no private building of bridges, or highways or mass transit systems,” the congressman-elect said.
Kim said he hopes to avoid even the appearance of a conflict by selling his company, especially because he has applied for a position on the House Committee on Public Works and Transportation.
Kim said he is negotiating with three potential purchasers. If negotiations are not concluded when he takes the oath of office Jan. 5, Kim said he will put his interests in a blind trust until the sale is completed.
