Interest is growing over the return of singer and actor Lee Seung-gi's 10.5 billion won security deposit as the expiration of his lease approaches, coinciding with the arrest of his landlord, Cha Ga-won, CEO of One Hundred Label, on fraud charges.
Cha was arrested on August 3 for allegedly violating the Act on the Aggravated Punishment of Specific Economic Crimes. He is accused of receiving a prepayment of 24.2 billion won from Nomore Co. under the pretense of proposing a business utilizing the intellectual property rights of affiliated entertainers, but failing to carry out the actual business. Cha's representatives deny the allegations.
This arrest is not directly related to Lee Seung-gi's lease agreement. Being arrested in a criminal case does not eliminate a landlord's obligation to return the security deposit, nor does it automatically lead to the seizure of their assets.
Lee signed a lease for a villa in Hannam-dong, Yongsan District, Seoul, owned by Cha and his wife in 2024 for a security deposit of 10.5 billion won. Lee's representatives claim they were asked for a higher deposit than initially indicated, and that Cha promised to cover loan and interest burdens but failed to do so.
Cha's side contends that the security deposit was set after an appraisal and that Lee was aware of and agreed to the contract procedures, citing messages as evidence. Given the conflicting claims, it cannot be definitively concluded that the contract constitutes a lease fraud at this stage.
Lee has reportedly completed the leasehold registration to protect his deposit. According to reports based on real estate registration records, Lee established a leasehold right for the 10.5 billion won deposit on the property in August 2024.
Unlike general lease rights protected by a change of residence report and a confirmed date, a leasehold right is a registered property right. If the return of the security deposit is delayed after the contract ends, the leaseholder can request an auction of the property.
However, establishing a leasehold right does not guarantee the full return of the security deposit. The actual amount recoverable depends on the registration priority of the leasehold, any senior mortgages, tax claims, and the auction price of the property. As the latest registration details have not been confirmed, it is currently uncertain whether Lee will recover the full 10.5 billion won.
For general tenants who have not established a leasehold right, the approach differs. It is advisable to communicate the intent to terminate the contract and request the return of the deposit through methods that leave a record, such as text messages or certified mail.
If a tenant has not received their deposit after the lease has ended, they should not vacate the property or change their residence report without completing the leasehold registration. If moving is unavoidable, they should apply for a leasehold registration order at the competent court and confirm that the registration has been recorded before moving to maintain their existing rights and priority for repayment.
If there is a concern that the landlord may dispose of their assets, the tenant may consider applying for a provisional seizure of real estate or deposits. If there is little dispute over the obligation and amount of return, a payment order can be requested, and if the landlord objects, the matter may proceed to civil litigation.
If the property goes to auction, tenants should verify their rights and the deadline for claiming distributions. Generally, tenants with a confirmed date must file their rights and distribution claims within the specified period.
* This article has been translated by AI.
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