Ryu Jun Yeol’s family corporation made billions of won in profit by investing in a building in Gangnam.
The March 8th episode of MBC’s show Exploration Planning Straight looked into how celebrities use one-person companies to increase their wealth. The focus was on the question, “Is it foolish not to have a one-person agency?”
During the show, the team visited a building in the Yeoksam district of Seoul. The building, which was listed and sold for about 15 billion won ($10 million) in 2022, was owned by a company called Deep Breeding. The company was run by Ryu Jun Yeol’s mother, with the actor serving as an internal director.
Deep Breeding had purchased the building in 2020 for around 5.8 billion won ($4 million). They then demolished it and sold it just two years later for a much higher price.
The show also pointed out that Deep Breeding took out a large loan to buy the building—about 4.8 billion won ($3.3 million) of the 5.8 billion won ($4 million) was borrowed. This means they only actually invested about 1 billion won ($680,000) of their own money.
It’s easier to get loans for commercial buildings under a company name than as an individual, according to a former bank manager. Companies can borrow up to 80% of the property value, and the interest on loans can be written off as a business expense.
The show gave examples of other celebrities who used this method, like Hwang Jung Eum and Lee Byung Hun, to build wealth using loans. Hwang Jung Eum bought a building for 3.5 billion won ($2.4 million) and made a 5 billion won ($3.4 million) profit when she sold it after a few years. Lee Byung Hun bought a building for 26 billion won ($17.7 million) and made over 10 billion won ($6.8 million) in profit in just three years.
The show mentioned that some people in the entertainment industry think not having a one-person agency is a missed opportunity.
Ryu Jun Yeol’s agency explained that he set up the company to manage his income and had planned to start a clothing business with friends. However, the project was delayed due to COVID-19, and they eventually sold the building.
>> Ryu Jun Yeol’s ‘Reply 1988’ Reunion Absence Explained: It Wasn’t About Hyeri
In the meantime, watch Ryu Jun Yeol in A Taxi Driver on Amasian TV for free.
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