Purchased a Two-Story Detached House for 5.5 Billion Won in 2017
Rebuilt as a Small Building for 18.6 Billion Won Market Profit
Sold for 24.2 Billion Won, This Year's Highest Actual Transaction Price for Detached Houses
Jeon Ju-won, a legend in Korean women's basketball and a coach for Woori Bank in the Women's Korean Basketball League, has attracted attention by purchasing a two-story detached house, reconstructing it into a small office building, and then selling it. The capital gain is estimated to be about 18 billion KRW.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system in September, the highest real transaction price for a detached house this year was 24.2 billion KRW, contracted at the end of September. The building is located in Cheongdam-dong, Gangnam-gu, Seoul, with ▲land area of 358㎡ ▲building area of 208㎡ ▲total floor area of 824㎡ ▲and consists of basement 1 floor to ground 4 floors.
Checking the registry shows that the seller of the building was Jeon Ju-won. The ownership is jointly held by her husband (70%) and herself (30%).
When the Jeon couple originally purchased the building in October 2017, the price was 5.55 billion KRW. They made a capital gain of 18.65 billion KRW in about six years.
At the time of purchase, the building was merely a two-story detached house built in 1982 with a total floor area of 323㎡. The couple reconstructed it into a four-story small office building in 2019.
According to the building register, floors 1 to 3 are neighborhood living facilities such as restaurants and offices, and the 4th floor is a private residence of 89㎡.
The construction industry estimates that the reconstruction cost was about 1 to 2 billion KRW. Even after deducting reconstruction costs, the couple earned a profit exceeding 15 billion KRW.
Former Korea Shipping Chairman Purchases Building
The buyer of the Jeon couple's building was identified as Lee Dong-hyuk, former chairman of Korea Shipping. He purchased it jointly with his wife with an 80:20 ownership ratio.
The wife is the debtor with a mortgage lien set at a maximum claim amount of 6 billion KRW.
Former Chairman Lee owns a foreigner’s residence in Itaewon-dong, Yongsan-gu, which ranks 10th in this year’s standard detached house public price at 12.7 billion KRW. It is also his registered address. This house is a two-story detached house with a total floor area of 878㎡, rebuilt in 2009. It is jointly owned with his son at an 80:20 ratio.
Lee’s wife owns a 173㎡ unit in Hannam The Hill, Hannam-dong, Yongsan-gu, purchased in 2015 under her sole name. She has her registered address there.
Lee’s family has long been interested in small office buildings around Cheongdam-dong. In 2008, Lee and his wife jointly purchased a 448㎡ land for 8 billion KRW and built a five-story small office building in 2016. The building is jointly owned by his wife and son. In 2012, they purchased a neighboring two-story building for 4.7 billion KRW, also jointly owned by his wife and son.
The building Lee purchased from the Jeon couple is about 250 meters away. After the ownership change, the Jeon couple’s building’s name was changed from Biwon to Cheongdam16.
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