Singer and actor Lee Seung Gi is facing uncertainty over his 10.5 billion KRW (approximately $7.4 million) jeonse deposit after the owner of his luxury Seoul villa, One Hundred chairman Cha Ga Won, was arrested on fraud charges.
Cha was detained after a court issued an arrest warrant on August 3 for alleged violations under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes.
According to AllKPop, prosecutors accuse her of receiving a 24.2 billion KRW (around $17 million) advance payment from Nomus Corporation for a business project involving the intellectual property of artists under her agency, but authorities claim the promised project was not carried out.
The arrest has raised concerns about Lee’s housing deposit because his jeonse lease for the villa in Seoul’s Yongsan District is scheduled to end this month.
Under the jeonse system, tenants pay a large deposit instead of monthly rent and expect to receive the full amount back when the contract ends.
Lee previously expressed concerns that he may have entered into an overpriced lease agreement and could face difficulties recovering his money.
Reports said about 7.3 billion KRW (around $5.3 million) of his deposit came from bank loans, meaning he may still have to repay the borrowed amount if the deposit is not returned.
Lee Seung Gi’s Property Issues Expand
Legal options remain available, including filing a lawsuit to recover the deposit, requesting forced collection, or seeking a court-ordered auction of the property. However, these procedures can take time, and there is no guarantee that the entire amount will be recovered.
The villa was also reportedly seized earlier this year by South Korea’s National Tax Service over Cha’s unpaid taxes.
The situation has become more complicated as additional financial disputes involving Cha have resurfaced. She has faced allegations related to unpaid artist settlements, employee wages, and payments owed to business partners.
Artists connected to these disputes reportedly include Lee Seung Gi, Lee Mu Jin, EXO-CBX, and The Boyz.
Attention has also grown after an alleged recording involving Cha, MC Mong, and EXO member Baekhyun was released by former entertainment reporter-turned-YouTuber Lee Jin Ho on August 4, Zapzee reported.
In the recording, Cha allegedly made claims about paying large sums connected to MC Mong’s financial issues and mentioned Baekhyun’s involvement. However, the claims have not been independently confirmed.
Lee Seung Gi is also dealing with another property-related issue involving a building he recently built in Seoul’s Jangchung-dong.
The construction company, Piark Construction, reportedly placed a lien on the building after remaining payments were not completed, preventing Lee from moving in as planned.