MBC’s investigative journalism program PD Note has focused on an unusual and highly inflated housing loan structure involving celebrities Lee Seung Gi and Baekhyun and a luxury villa linked to One Hundred Label Chairwoman Cha Ga Won.
The luxury villa in question was developed by P.ark Group, led by Chairwoman Cha. It was revealed that Lee Seung Gi and Baekhyun are living at the villa under jeonse contracts worth 10.5 billion won ($6.9 million) and 16 billion won ($10.5 million), respectively.
Jeonse is a unique South Korean housing rental system in which tenants pay a large lump-sum deposit—typically 50% to 80% of a property’s market value—instead of monthly rent.
According to PD Notebook, the maximum loan amount originally secured for one villa unit in the name of Chairwoman Cha was approximately 3.6 billion won ($2.4 million). However, the loan amount reportedly increased to more than three times that figure after the property was converted into jeonse loans under Lee Seung Gi and Baekhyun’s names.
The program also raised questions about the lender. The loans exceeding 10 billion won were issued by a credit union located in Wando, South Jeolla Province, not a major financial institution in Seoul.
The credit union explained the review process behind Baekhyun’s 16 billion won ($10.5 million) loan, stating, “We conduct our own review of the local market and assess whether Baekhyun has sufficient income and repayment ability.”
Addressing the unusually high jeonse deposits, Lee Seung Gi’s side shared their own experience.
Lee Seung Gi told the PD Note production team, “The deposit amount we ultimately signed for was several times higher than what had originally been discussed. It didn’t make sense to me, so I asked why, and I was told the property’s appraised value had come out to 16 billion won ($10.5 million).”
The program also presented evidence that appeared to contradict Chairwoman Cha’s claim that she personally covered the substantial loan interest payments.
Chairwoman Cha previously stated, “I have been paying hundreds of millions of won in monthly interest for our artists for the past three years.” However, PD Note reported that the interest payments came from company accounts rather than Chairwoman Cha’s personal funds. The program further claimed that the celebrities themselves have been paying the interest for the past several months.
One expert featured on the broadcast described the arrangement as “a typical jeonse fraud scheme.”
“They inflate the jeonse price as much as possible and then offer to pay the interest,” the expert said. “If they’re guaranteeing the loans, arranging the financing, and even covering the interest payments, it sounds like a great deal for the tenant. But tenants who moved into similar properties have ended up becoming victims of major fraud.”
The expert argued that the structure shares many similarities with typical jeonse fraud schemes.
>> Lee Seung Gi and Baekhyun’s Multi-Million Home Caught Up in Tax Seizure
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