Lee Seung-gi's representatives announced that he has not received a security deposit amounting to 10.5 billion won from Cha Ga-won, the chairman of the Piak Group and CEO of One Hundred.
On August 6, Lee Seung-gi's legal representatives, Yoon Yong-seok and Jang Jae-won, issued a statement saying, "This matter is a private issue unrelated to the artist's entertainment activities, but following Cha Ga-won's recent arrest and the approaching expiration of the lease agreement, we felt it necessary to clarify our position due to ongoing inquiries."
They further stated, "The issue of Cha Ga-won's failure to return the security deposit is not merely a matter of non-refund; we believe it constitutes 'security fraud' as he accepted the deposit without any intention or ability to return it. It appears that a sophisticated scheme was strategically employed to defraud a well-known celebrity into taking out a large loan to enter into a high-value lease agreement, only to misappropriate the security deposit."
As evidence, Lee Seung-gi's team pointed out that Cha initially agreed to sell the property to Hyolim Industries for 7 billion won but abruptly canceled the contract and pursued a higher-value lease agreement instead.
They explained, "It seems that Cha's side sold the unit to a third party, then retracted the contract while concealing this fact to push for a lease agreement in Lee Seung-gi's name. There are indications that they anticipated a loan of approximately 7.3 billion won even before the loan review and prepared the lease agreement accordingly."
Additionally, they noted, "Immediately after receiving the security deposit, Cha and his spouse transferred ownership of a high-value property from a trust company. We believe they planned to use the lease loan in Lee Seung-gi's name as personal funds, intending not to return it at the end of the contract."
They also raised concerns about potential accomplices, stating, "While Cha Ga-won has been arrested, it appears that accomplices are still living off the proceeds of the crime, including Cha's spouse and individuals involved in real estate brokerage, lending, and appraisal."
Regarding the process of returning the security deposit, they mentioned, "Cha's legal representatives had recently assured both the court and the artist's side that there were no issues with the return of the deposit. However, on the contract expiration date, Cha's spouse claimed that the return was difficult due to Cha's absence. We prepared to move based on this assurance, but related costs have also become a loss for us."
Finally, they stated, "With Cha Ga-won's arrest, staff and artists can feel a bit of relief. We will strive for severe punishment of Cha's side to prevent such crimes from recurring while focusing on our primary entertainment activities."
Previously, in 2024, Lee Seung-gi signed a lease agreement for a villa in Hannam-dong, Yongsan-gu, owned by Cha Ga-won and his spouse for 10.5 billion won. This property is part of a luxury residential complex developed by Piak Group in UN Village, Hannam-dong, which began sales in 2022 but remained unsold, leading to lease agreements with Lee Seung-gi and EXO member Baekhyun.
In response to Lee Seung-gi's allegations of security fraud, Cha's representatives claimed, "Lee Seung-gi requested a lease agreement structured to reduce the tax burden on multiple property owners by accepting the contract fee as an in-kind payment."
Cha was arrested on August 3 for allegedly defrauding approximately 30 billion won after receiving a 24.2 billion won advance payment for a contract involving the intellectual property rights of an artist under his management, which he did not utilize for the intended business.
* This article has been translated by AI.
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