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Lee Seung-gi Fires Back at Cha Ga-won's Denial of 'Jeonse' Fraud: "We Will Hold Them Legally Accountable"

Lee Seung-gi Fires Back at Cha Ga-won's Denial of 'Jeonse' Fraud: "We Will Hold Them Legally Accountable"
Lee Seung-gi (Photo=Getty Images Korea)

Singer and actor Lee Seung-gi and Cha Ga-won, chairwoman of ONE HUNDRED, have become embroiled in a dispute over a 10.5 billion won jeonse lease agreement for the luxury villa Lanuvo in Seoul's Hannam-dong district.

Attorney Hyun Dong-yeop, the legal representative for Chairwoman Cha Ga-won, released a video on his YouTube channel on June 11 titled "[Full Episode] The Secret of MBC and Lee Seung-gi's Hannam-dong Jeonse Fraud," directly refuting the allegations raised by MBC's investigative program "PD Note" and Lee Seung-gi's claims.

Previously, "PD Note" raised concerns regarding the 10.5 billion KRW jeonse contract for "Lanuvo," the luxury villa in Hannam-dong where Lee Seung-gi resides. Through interviews with experts, the show suggested that the contract structure shared similarities with typical jeonse fraud schemes.
Cha Ga-won (Photo=Getty Images Korea)

In response, Attorney Hyun argued, "Lanuvo was not a target for viral marketing to resolve unsold units, nor is this a case of jeonse fraud. The contract was made based on business and managerial decisions."

According to Attorney Hyun, the unit where Lee Seung-gi currently resides was originally scheduled to be sold to another corporation. However, during the process of signing an exclusive contract with ONE HUNDRED, Lee Seung-gi reportedly requested that this specific unit be provided to him. Attorney Hyun claimed, "BAEKHYUN had already signed a contract under a similar arrangement, and Lee Seung-gi also requested, 'Please do it for me just like BAEKHYUN.'"

Regarding the reason why Lee Seung-gi chose a jeonse lease instead of transferring ownership, Hyun explained, "It was a decision made considering the tax burden on multi-home owners. If he owned Lanuvo while already holding his existing properties, he would face a heavy comprehensive real estate holding tax, which is why he opted for a jeonse lease."

Lee Seung-gi's side immediately refuted these claims.

Attorney Yoon Yong-seok, Lee Seung-gi's legal representative, released a statement on June 11, stating, "Cha Ga-won's side is continuously repeating false claims and distorting the core of the issue. Lee Seung-gi will expose Cha Ga-won's alleged criminal wrongdoing in detail through investigative agencies and hold them strictly accountable."

Lee Seung-gi's side emphasized that the core reason for terminating the exclusive contract is unpaid settlements. They also claimed that Lee Seung-gi used his personal funds to resolve the unpaid wages of on-site staff first, and that the interest on the jeonse loan—which Cha's side claimed to have covered—was ultimately paid by Lee Seung-gi himself.

They added, "If Cha Ga-won claims this is not jeonse fraud, she simply needs to properly return the jeonse deposit as a landlord when the lease agreement expires. Resolving the unpaid settlements and unpaid wages for employees and artists should be the top priority."

Meanwhile, the Ministry of Employment and Labor recently launched a comprehensive investigation into unpaid wages at ONE HUNDRED and its affiliates. ONE HUNDRED and Big Planet Made Entertainment have recently been embroiled in consecutive disputes with their signed artists over unpaid settlements and management issues.

TAEMIN and BE'O transferred to new agencies after terminating their contracts, while VIVIZ won a preliminary injunction suspending the effect of its exclusive contract. Nine members of THE BOYZ also parted ways with the agency after their injunction was granted, and Lee Mu-jin is currently seeking a preliminary injunction to suspend his exclusive contract.

(SBS Entertainment News | Kang Kyung-youn)
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