Ha Ji-won’s 10 Billion Won Building Bought with All-In Investment is 'Empty'... "Estimated Annual Loss of 200 Million Won"

Purchased at Twice the Market Price at the Time

Actress Ha Ji-won is suspected of suffering significant losses after purchasing a building in Seongsu-dong, Seoul, with a loan worth several billion won. Due to rising interest rates, the interest payments have surged, and most of the building remains vacant, resulting in a deficit.

On the 20th, the real estate industry estimated that the Seongsu-dong building Ha Ji-won purchased in 2020 under the name of Haewadal Entertainment, which she founded, is incurring an annual loss exceeding 200 million won.

[Image source=Yonhap News]

In 2020, Ha, who is the CEO of Haewadal Entertainment, purchased 'Building 8' located in Seongsu-dong 2-ga for 10 billion won. The purchase price per 3.3㎡ (1 pyeong) was 128 million won, the highest price in the Seongsu-dong area at the time. Compared to a similar building in the area that was traded at 76.49 million won per 3.3㎡ in March, this price is nearly double.

The building has one basement floor and eight above-ground floors. Except for the optician's store on the first floor, the rest of the building is known to be vacant. Other than the optician's store, other floors have only occasionally been rented out for short-term events such as Ha's personal exhibitions or pop-up stores, with no annual leases.

The problem is that interest rates have risen sharply compared to 2020.

Ha's estimated loan amount is 8 billion won. Assuming an annual interest rate of 4%, the monthly interest payment is at least about 26 million won. This means that over 300 million won is paid annually in loan interest.

However, the estimated annual rental income from the building Ha purchased is 90 million won. Since the loan interest is much higher than the rental income, it is highly likely that the building is incurring an annual loss exceeding 200 million won. Additionally, the land price increase in Seongsu-dong, where the building is located, has not been significant.