Jun Ji-hyun's Real Estate Investment Yields $3.5 Million Profit Amid Tax Investigation

South Korean actress Jun Ji-hyun has reportedly seen a significant increase in the value of a building she purchased three years ago in Seoul's Gangseo District. The property has appreciated by approximately 4.7 billion KRW (around $3.5 million USD).

According to recent reports from the real estate industry, Jun Ji-hyun acquired the building located near the Gangseo-gu Office intersection on Gonghang-daero in February 2022 for 50.5 billion KRW (approximately $37.5 million USD). The building, which covers a land area of 2,839 square meters (859 pyeong) and has three above-ground floors, remains in near-new condition.

Completed in 2019, the building is conveniently located about a 10-minute walk from Gayang Station on Line 9, making it highly accessible. The future opening of the 'Daejang Hongdae Line,' connecting Seoul's Hongdae Station to Bucheon Daejang District, is expected to further enhance the property's value.

Currently, the building operates as an LG Best Shop, an electronics store, without any additional construction. The store secured a long-term lease agreement at the time of the building's completion, with a deposit of 600 million KRW and a monthly rent of 160 million KRW for ten years.

The rental yield based on the purchase price is 3.9%, indicating that Jun Ji-hyun's investment strategy focused on securing a reliable tenant for stable cash flow and long-term asset appreciation.

The building's registry lists the maximum secured claim amount at 33.06 billion KRW, suggesting a loan principal of approximately 28 billion KRW and a cash investment of 22.5 billion KRW. This implies that about half of the purchase price was financed through loans.

Assuming an interest rate of 3.5% at the time of purchase, it is estimated that Jun Ji-hyun earns a net monthly profit of 70 to 80 million KRW after deducting loan interest from the rental income.

Three years post-purchase, Jun Ji-hyun has realized a capital gain of around 4.7 billion KRW. Considering that the average land price increase in Seoul last year was only 1.3%, the current estimated market value of the building is approximately 55.2 billion KRW.

Previously, a media outlet reported that the National Tax Service conducted a thorough tax investigation on Jun Ji-hyun in September 2023, resulting in a substantial tax payment. This was the first such investigation in nine years since 2014, and she underwent two rounds of tax audits.

In response, Jun Ji-hyun's agency stated, "Jun Ji-hyun has confirmed that there were no issues following the 2023 tax investigation, as all major matters were handled through proper procedures. A difference in interpretation between the tax accountant and the National Tax Service regarding expense processing led to a discrepancy, resulting in an additional tax payment of approximately 20 million KRW. This is a typical adjustment that can occur during tax reconciliation."

Reported by Kim Se-ah, TenAsia haesmik@tenasia.co.kr