Bid Price for Cheongdam-dong Luxury Villa Falls Below Appraised Value
"If Kangtongjutaek Fails to Sell Again, Recovery Remains Uncertain"
It was belatedly revealed that actress Seo Hyunjin has fallen victim to a jeonse fraud. Seo reportedly applied for an auction herself this past April after failing to recover her jeonse deposit.
According to a report by 'Newsprit' on June 2, Seo Hyunjin personally filed for an auction in April regarding her jeonse property in Cheongdam-dong, as she was unable to retrieve her deposit.
Actress Seo Hyunjin has become a victim of a jeonse fraud at a luxury villa in Cheongdam-dong, Gangnam-gu, Seoul, and has entered the auction process. Screenshot from SBS's "Temperature of Love" featuring Seo Hyunjin
According to information from the Supreme Court’s auction database, Seo Hyunjin signed a jeonse contract in April 2020 for a luxury villa in Cheongdam-dong with a deposit of 2.5 billion won and completed the jeonse right registration. Upon renewing the contract in 2022, the deposit increased by 125 million won to a total of 2.625 billion won.
However, after the contract expired in April 2023, the landlord did not return the deposit. In September of the same year, Seo Hyunjin completed the registration of her leasehold right and vacated the property. She then initiated the auction process this year.
The problem is that the property in question has been classified as a so-called "Kangtongjutaek" (a term for a property where the mortgage and other claims exceed its value). Although the appraised value is about 2.873 billion won, the property has already failed to sell once at auction, and the current minimum bid has dropped to approximately 2.2989 billion won. If the auction fails again on the 17th, the amount Seo Hyunjin can recover from her deposit may decrease further. To fully recover her deposit of 2.625 billion won, the winning bid must exceed that amount, but given the current sluggish real estate market, experts believe the chances of this happening are low.
Seo Hyunjin has since moved out of her Cheongdam-dong jeonse property and relocated to 'ePyeonhansesang Oksu Park Hills' in Oksu-dong, Seongdong-gu, Seoul. She purchased an 84.96-square-meter unit in September 2018 for 1.5 billion won under her own name. As there is no mortgage registered on the property, it is presumed that the purchase was made entirely in cash.
In April of this year, a unit of the same size in the complex was sold for 2.29 billion won, setting a new record price. This was an increase of 90 million won compared to the previous transaction just a month earlier.
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