Singer and actor Lee Seung Gi is currently facing a distressing financial predicament, with the possibility of losing his substantial 10.5 billion KRW (approximately 7.4 million USD) jeonse security deposit. This uncertainty stems from the recent arrest of his landlord, One Hundred chairman Cha Ga Won, on serious fraud charges. The pressing question now is whether the beloved star will be able to recover his significant deposit following Cha Ga Won’s detention.
One Hundred Chairman Cha Ga Won Arrested for Fraud
On August 3, a court issued an arrest warrant for Cha Ga Won, citing charges of fraud under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. Prosecutors allege that Cha proposed a business venture to Nomus Corporation, leveraging the intellectual property (IP) of artists signed under her entertainment agency. She reportedly received an advance payment of a staggering 24.2 billion KRW (approximately 17 million USD) for this venture, which authorities claim was never actually carried out. Furthermore, investigators have reportedly uncovered evidence suggesting Cha Ga Won engaged in contract splitting, an alleged attempt to roll over existing debts while already burdened with substantial liabilities. Despite the gravity of the accusations, Cha Ga Won has vehemently denied all allegations against her.
Wider Financial Disputes Emerge
Following her arrest, a cascade of financial disputes involving Chairman Cha Ga Won has come under intense renewed scrutiny. Beyond the Nomus Corporation case, Cha now faces accusations of failing to pay settlement earnings to various artists who were formerly signed under her agency. This list includes prominent names such as Lee Seung Gi himself, Lee Mu Jin, EXO-CBX, and The Boyz, raising concerns across the K-pop landscape. Allegations of unpaid employee wages and overdue payments to business partners have also surfaced, painting a broader picture of financial instability surrounding her enterprises.
Lee Seung Gi’s Jeonse Predicament Deepens
At the heart of these unfolding events is Lee Seung Gi’s perilous jeonse deposit. The multi-talented artist has been residing in a luxurious villa situated in Seoul’s affluent Yongsan District, a property owned by Cha Ga Won. His lease is a jeonse agreement, backed by the colossal 10.5 billion KRW deposit. With his lease agreement set to expire this month, Lee Seung Gi had previously voiced concerns, claiming he was the victim of an overpriced lease arrangement and expressing serious worries about the potential inability to recover his deposit. Complicating this already dire situation is the fact that approximately 7.3 billion KRW (around 5.3 million USD) of the total deposit was financed through bank loans. Should the deposit not be returned, Lee Seung Gi could be personally forced to repay this outstanding loan balance, a tremendous financial burden. While legal avenues, such as a lawsuit seeking the deposit’s return or compulsory enforcement leading to a court-ordered auction of the property, are available, such proceedings are notoriously time-consuming, and there’s no guarantee of recovering the full amount. Adding to the complexity, the villa itself was reportedly seized earlier this year by South Korea’s National Tax Service due to Cha’s unpaid taxes, further clouding any recovery efforts.
Further Complications: Lee Seung Gi’s New Home Plans Disrupted
As if the jeonse crisis weren’t enough, Lee Seung Gi has encountered yet another significant setback concerning a building he recently constructed in Seoul’s Jangchung-dong. The contractor, Piark Construction — notably identified as a family-owned company affiliated with Cha Ga Won — has exercised a lien on the property due to an unpaid remaining construction balance. This action currently prevents Lee Seung Gi from occupying the building. He had reportedly planned to move into this new property once his current lease expired, but these meticulously laid plans have now been severely disrupted, leaving him without a clear place to relocate amidst his ongoing housing crisis.
