[Sportschosun reporter Park A-ram] A luxury villa in Cheongdam-dong, Gangnam District, Seoul, for which actress Seo Hyun-jin applied for an auction after failing to recover her jeonse security deposit worth around KRW 2.6 billion, has been confirmed to be entering auction proceedings again. As the property returns to the auction market following the landlord's bankruptcy, attention is focusing on whether Seo will be able to recover her deposit.
According to a report by Ttangjipgo on the 2nd, the fourth floor of Hestia, a luxury villa in Cheongdam-dong, Gangnam District, Seoul, will be put up for re-auction on the 6th of this month, with a minimum bid price of KRW 1.47129 billion. The property previously went through auction proceedings, which were suspended, before the sale process resumed.
The property was first put up for auction in September 2024, with an appraised value of approximately KRW 2.87363 billion. After failing to attract bidders, it went unsold several times, and the proceedings were suspended when the minimum bid price fell to the KRW 1.4 billion range. This time, the first auction round is reportedly being held again based on the previous minimum bid price.
The property is tied to Seo Hyun-jin's jeonse deposit of KRW 2.65 billion. She signed a lease for the property in April 2020 with a deposit of KRW 2.5 billion and later increased it by KRW 125 million when extending the contract. However, the issue came to light after the landlord failed to return the deposit even after the lease ended in April 2024.
Seo Hyun-jin preserved her rights by registering a leasehold right in September of the same year and has since demanded the return of her deposit. Previously, the court had ordered the commencement of a compulsory auction for the property at Seo's request.
The re-auction is reportedly taking place after the landlord, A, ultimately declared bankruptcy. A is known to have supplied high-end homes in the Gangnam area through the luxury housing brand BRUNNEN, but reportedly experienced financial difficulties during the business process.
According to Ttangjipgo, three of the properties formerly owned by A are being auctioned this time: the fourth floor of Hestia, which is tied to Seo Hyun-jin's jeonse deposit; the third floor of the same building; and the fifth floor of BRUNNEN CHEONGDAM, which had remained unsold.
In particular, the fourth floor of Hestia reportedly had mortgages and other security interests held by several financial institutions in addition to Seo Hyun-jin's registered leasehold right. As evidence emerged that the landlord had used the property as collateral to raise funds, attention is also focused on whether Seo will be able to recover the full amount of her deposit.
The problem is that the current minimum bid price has fallen well below Seo Hyun-jin's deposit. If the winning bid is lower than the deposit, it will be difficult for her to recover the full amount at once.
Kim Ki-hyun, head of Ttangjipgo Auction, explained to Ttangjipgo, "Although Seo Hyun-jin is the highest-priority rights holder on the register, auction expenses and statutory priority claims are settled first from the winning bid, and the remaining proceeds are then distributed to Seo Hyun-jin."
He added, "She would have to seek the remaining deposit from A, but since A has already declared bankruptcy, the outcome is expected to depend on the assets that remain."
Meanwhile, Seo Hyun-jin is reportedly believed to have moved to an apartment in Oksu-dong, Seongdong-gu, Seoul, after failing to recover her deposit from the rental home in Cheongdam-dong. The apartment was confirmed to be a property Seo had previously purchased and owned under her own name.
tokkig@sportschosun.com
This article has been translated by GripLabs Mingo AI.
