Purchase of Single-Story Building in Gangnam Yeoksam-dong for New Construction
90% of Purchase Price Covered by Bank Loan
Image Damage Unavoidable
[Asia Economy Reporter Lee Isul] Did he trade his image for 4 billion won? Criticism toward actor Ryu Jun-yeol, who is embroiled in real estate speculation allegations, shows no signs of subsiding.
According to the real estate registry, Ryu Jun-yeol purchased an 83-pyeong (approximately 274.4㎡) plot of land in Yeoksam-dong, Gangnam-gu, Seoul, in 2020 under a personal corporation's name for 5.8 billion won.
One media outlet reported that Ryu Jun-yeol took out a loan for 5.2 billion won, which is 90% of the purchase price, built a new structure, and put it on the real estate market immediately in November last year. The sale was finalized last month for 15 billion won, resulting in a post-tax capital gain of 4 billion won.
The building has two basement floors and seven above-ground floors, with a total floor area of 1,013.35㎡ (306.54 pyeong). The construction cost is estimated at about 2.4 billion won, calculated at 8 million won per pyeong. It is reported that Ryu Jun-yeol also covered about 1.7 billion won, which is 70% of the construction cost, through loans.
Ryu Jun-yeol established the corporation that purchased the building in March 2018, with his mother registered as the representative.
There are criticisms that obtaining loans through a paper company and then building new structures to gain capital gains is a typical form of speculation. Recently, celebrities have been facing issues for purchasing buildings using such methods.
A real estate official pointed out, "People who aim for short-term capital gains by flipping buildings often use corporations."
The agency explained, "The corporation was established for managing personal income," adding, "They planned and held photo exhibitions." Regarding the building purchase, they said, "They intended to start a clothing business with friends, but due to COVID-19, the plan was put on hold, and the decision was made to sell the building."
Ryu Jun-yeol has consistently participated in donation activities and environmental movements, such as Greenpeace's campaigns to reduce plastic and protect Antarctica, building an image as a righteous young man.
After the release of the film Money (2019), he said in an interview with reporters, "Some people focus on financial investment as their main occupation, but I want to concentrate on acting and meeting audiences. I have neither the talent nor interest in that," adding, "I am cautious about aiming to become wealthy. It will be difficult for me to become a building owner."
There is a saying that popular culture artists live off the public's popularity. Some actors receive appearance fees worth hundreds of millions of won per episode or per appearance. However, they must pay the opportunity cost. They must thoroughly manage themselves and consider their external influence in all their words and actions.
An actor's image is their lifeline. Roles entrusted to actors who commit illegal acts or acts against social norms are limited. The public consuming works featuring such actors cannot help but recall their past mistakes.
In an era where image is content, the word "privacy" is meaningless for celebrities.
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