Cha Ga-won, the CEO of One Hundred, known as a wealthy individual, has had his home seized for failing to pay off tens of billions of won in "luxury debt." As a result, there are now red flags regarding the recovery of deposits for singers Lee Seung-gi and Baekhyun, who are residing in the villa on high-value jeonse contracts.
According to the legal and real estate sectors on the 20th, the Seoul Western District Court seized the shares of the luxury villa 'La Nuovo' in Hannam-dong owned by CEO Cha on the 9th at the request of Hanwha Galleria Co., Ltd. The claim amount is approximately 3.6 billion won. CEO Cha is reported to have purchased high-priced products from luxury stores on credit as a VIP at department stores and has been in arrears for a long time.
The villa in question has already been revealed to be in a so-called "ragged" state, with overlapping seizures due to high tax arrears from the National Tax Service and various fraud allegations. The currently set seizure claim amount alone reaches about 15.6 billion won, and when including additional seizures from individual creditors and mortgage rights, the debt level has risen to an unmanageable scale.
The biggest concern is the potential damage to the tenants. It is known that singers Lee Seung-gi and Baekhyun are residing in the villa, having paid astronomical jeonse amounts of 10.5 billion won and 16 billion won, respectively. As the risk of falling into an 'empty jeonse' situation increases, where the debt exceeds the property value, there are predictions that they may not be able to fully recover their deposits.
The management situation of the companies led by CEO Cha is also deteriorating. Major corporations such as One Hundred and Big Planet Made have reportedly fallen into capital erosion, and they are experiencing serious financial difficulties, including unpaid settlements for affiliated artists and employee wage arrears.
