Sovereign State, a newly established corporation, entered into a lease agreement with the Korea Construction Technology Association through opaque procedures. After misappropriating approximately 10 billion won in tenant deposits, the company used the funds for other ventures, depleting the deposits.
On July 24, a visit to the parking lot of the Rich Central Building in Incheon Songdo revealed that the electric vehicle chargers were completely removed. This was the site of the 'Megawatt' charging station, which Sovereign EPS had promoted as the largest in the country. All 60 charging units, including fast chargers, had been dismantled, leaving only a crumpled opening ceremony banner behind. Dismantling of the electrical equipment was ongoing in one corner of the parking lot.
Choi, the representative of Sovereign State, also served as the head of Sovereign EPS. In October 2022, he held the opening ceremony for Megawatt at this location, boasting plans to expand a network of large charging stations across major hubs nationwide.
Sovereign State and Sovereign EPS were essentially the same entity, differing only in name. The corporate registration documents for both entities listed Choi as the CEO and Lee as the auditor. Yoo, who was responsible for tenant contracts under the title of director at Sovereign State, was actually a registered director at Sovereign EPS. He lent Choi 95 million won and received a 3% stake in Sovereign EPS in return.
A significant portion of the 10 billion won in tenant deposits transferred to Sovereign State's account was confirmed to have passed through Choi's personal account or directly transferred to Sovereign EPS's account. The misappropriated deposits were believed to have been used for real estate purchases in Songdo. In the summer of 2022, Sovereign EPS purchased the parking lot and car wash within the Rich Central Building for 3.68917 billion won. On the day the ownership transfer was completed, a joint mortgage with a maximum claim amount of 2.76 billion won was established on the entire property, with Choi as the debtor rather than the corporation.
As Sovereign EPS aggressively expanded its business, the corporation's debts spiraled out of control. An insider familiar with the situation stated, "At that time, the corporation's total debt exceeded 30 billion won," adding that it was a structure of rolling over debts with tenant deposits and external investments. With a monthly rent of up to 95 million won owed to the association, this structure could not be sustained for long. Rent payments began to fall behind in April 2023. According to a first-instance ruling, Choi was aware that liquidity was running low by that time. Nevertheless, he continued to accept deposits from new tenants through Sovereign State while entering into sublease agreements.
After five months of overdue payments, on September 21, 2023, the association sent a notice of contract termination to Sovereign State and the following day issued a notice to residents demanding their eviction. Subsequently, Choi claimed to investigators and creditors that selling the Songdo assets would allow for full repayment of the deposits. However, due to conflicts over claims and debts, including a lien on the parking lot by relatives, the sale ultimately fell through, and his promise was unfulfilled. Ultimately, Sovereign EPS was declared bankrupt in November 2025, leaving the recovery of approximately 10 billion won in tenant deposits virtually impossible.
The Seoul Central District Prosecutor's Office, Criminal Division 8, indicted Choi on charges of fraud and forgery of documents, while Yoo was charged with fraud and Lee with forgery and use of forged documents, all without detention. Prosecutors identified 28 victims with a total loss of 10.03 billion won, including 23 forged sublease contracts. Choi has maintained his freedom during the investigation, citing his willingness to repay. However, even if he liquidates assets, the structure makes it impossible to repay the deposits.
Despite winning a first-instance civil lawsuit, tenants face a long road to recovering their deposits. The only potential source of funds, Sovereign EPS, is undergoing bankruptcy proceedings and is effectively in liquidation. The related real estate and remaining assets are being auctioned off, and even after liquidation, it is unlikely that tenants will receive any portion due to priority creditors.
The Ajou Economic Investigation Team attempted to contact Choi multiple times for his perspective, but he did not respond. Yoo denied the allegations in a phone call, stating, "I was not involved in finance or management and have no connection to the forgery of documents." Lee indicated he would respond later but has not been heard from since.
On July 24, a visit to the parking lot of the Rich Central Building in Incheon Songdo revealed that the electric vehicle chargers were completely removed. This was the site of the 'Megawatt' charging station, which Sovereign EPS had promoted as the largest in the country. All 60 charging units, including fast chargers, had been dismantled, leaving only a crumpled opening ceremony banner behind. Dismantling of the electrical equipment was ongoing in one corner of the parking lot.
Choi, the representative of Sovereign State, also served as the head of Sovereign EPS. In October 2022, he held the opening ceremony for Megawatt at this location, boasting plans to expand a network of large charging stations across major hubs nationwide.
Sovereign State and Sovereign EPS were essentially the same entity, differing only in name. The corporate registration documents for both entities listed Choi as the CEO and Lee as the auditor. Yoo, who was responsible for tenant contracts under the title of director at Sovereign State, was actually a registered director at Sovereign EPS. He lent Choi 95 million won and received a 3% stake in Sovereign EPS in return.
A significant portion of the 10 billion won in tenant deposits transferred to Sovereign State's account was confirmed to have passed through Choi's personal account or directly transferred to Sovereign EPS's account. The misappropriated deposits were believed to have been used for real estate purchases in Songdo. In the summer of 2022, Sovereign EPS purchased the parking lot and car wash within the Rich Central Building for 3.68917 billion won. On the day the ownership transfer was completed, a joint mortgage with a maximum claim amount of 2.76 billion won was established on the entire property, with Choi as the debtor rather than the corporation.
As Sovereign EPS aggressively expanded its business, the corporation's debts spiraled out of control. An insider familiar with the situation stated, "At that time, the corporation's total debt exceeded 30 billion won," adding that it was a structure of rolling over debts with tenant deposits and external investments. With a monthly rent of up to 95 million won owed to the association, this structure could not be sustained for long. Rent payments began to fall behind in April 2023. According to a first-instance ruling, Choi was aware that liquidity was running low by that time. Nevertheless, he continued to accept deposits from new tenants through Sovereign State while entering into sublease agreements.
After five months of overdue payments, on September 21, 2023, the association sent a notice of contract termination to Sovereign State and the following day issued a notice to residents demanding their eviction. Subsequently, Choi claimed to investigators and creditors that selling the Songdo assets would allow for full repayment of the deposits. However, due to conflicts over claims and debts, including a lien on the parking lot by relatives, the sale ultimately fell through, and his promise was unfulfilled. Ultimately, Sovereign EPS was declared bankrupt in November 2025, leaving the recovery of approximately 10 billion won in tenant deposits virtually impossible.
The Seoul Central District Prosecutor's Office, Criminal Division 8, indicted Choi on charges of fraud and forgery of documents, while Yoo was charged with fraud and Lee with forgery and use of forged documents, all without detention. Prosecutors identified 28 victims with a total loss of 10.03 billion won, including 23 forged sublease contracts. Choi has maintained his freedom during the investigation, citing his willingness to repay. However, even if he liquidates assets, the structure makes it impossible to repay the deposits.
Despite winning a first-instance civil lawsuit, tenants face a long road to recovering their deposits. The only potential source of funds, Sovereign EPS, is undergoing bankruptcy proceedings and is effectively in liquidation. The related real estate and remaining assets are being auctioned off, and even after liquidation, it is unlikely that tenants will receive any portion due to priority creditors.
The Ajou Economic Investigation Team attempted to contact Choi multiple times for his perspective, but he did not respond. Yoo denied the allegations in a phone call, stating, "I was not involved in finance or management and have no connection to the forgery of documents." Lee indicated he would respond later but has not been heard from since.
* This article has been translated by AI.
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