Lee Seung-gi warns of Jeonse fraud after losing 10.5 billion won deposit

Singer and actor Lee Seung-gi has announced legal action after failing to recover a 10.5 billion won Jeonse deposit from a luxury villa in Hannam-dong, Seoul. The dispute follows the expiration of his contract this August and comes as the landlord, Chairman Cha Ga-won, was arrested on fraud charges related to celebrity IP businesses.

Singer and actor Lee Seung-gi has warned of the dangers inherent in Jeonse contracts, revealing that he has been unable to recover a Jeonse deposit amounting to 10.5 billion won. He directly criticized the industry, stating that "devils abound" because the intense desire for real estate can become a catalyst for fraud and disputes. As Lee has announced legal action after failing to receive his deposit upon the expiration of his contract, his remarks are viewed as a desperate warning from a direct victim rather than mere real estate advice.

In a video titled "Hey, Wait a Minute" released on the YouTube channel Lee Seung-gi 2 on the 14th, Lee toured the Gangnam area in Seoul with staff members looking for a Jeonse house, highlighting the risks of real estate contracts. While conversing with the production team during the house-hunting process, he noted, "Real estate is the ultimate goal for most people," adding, "Because everyone's wishes are concentrated there, devils abound."

Lee emphasized that it is more important than anything to properly vet the other party in a real estate transaction and filter out risk factors. "You have to filter these things out well," he confessed. "You don't know until you experience it yourself. It makes you think a lot and study intensely." He explained that experiencing the situation of not receiving a massive deposit firsthand made him realize how crucial the conditions and verification items he had overlooked during the contract were.

In particular, Lee identified the distinction between fraud and simple default as a core element to consider in Jeonse disputes. "Experiencing this myself, I realized there are so many things to check that I just assumed would be fine and moved past," he explained. "The biggest thing is whether it is fraud or simple default. That is the difference between criminal and civil matters." He suggested that the failure to return a deposit does not immediately constitute criminal fraud; rather, the critical issue is proving whether the other party had the intent to embezzle the money at the time of the contract.

He also pointed out the reality that proving Jeonse fraud is difficult. "The truly hard part about Jeonse fraud is the proof," he questioned, "How can you have evidence that there was an intention to deceive you and embezzle your money from the very beginning?" He noted that even if a transaction appears normal at the time of the contract, one may face difficulties in proving the landlord's intent when deposit return issues arise later.

Lee also expressed caution regarding the attitude of relying solely on a real estate agent's explanation or the impression of a landlord. "If you just trust what the agent says, or if you act like 'it's all good, the person looks fine, so surely they wouldn't do that?', then when a risk arises, you have no shield or sword to defend yourself," he said. His advice was that vague trust in the other party cannot protect a massive deposit, and one must secure grounds to verify and respond before signing a contract.

Even as the production team examined the interior condition and facilities of the house, Lee emphasized that one must not forget the essence of a Jeonse contract. He stated that no matter how good the exterior or interior condition of a house is, the most important thing is whether the deposit can be fully returned when the contract ends. This advice stemmed from his experience that the landlord's ability to repay and the possibility of recovering the deposit should take precedence over satisfaction with the living space.

He identified himself as a direct victim when explaining the reason for these remarks. "Learning knowledge is important, but it cannot beat knowledge gained through physical experience," he said. "I hope that through my experience, someone else does not have to go through such things." He expressed his wish that his experience could serve as a warning to others, even as he suffers from the dispute surrounding the massive deposit.

The incident involving Lee Seung-gi's failure to recover the Jeonse deposit dates back to July last year. In July 2024, he moved into a luxury villa with an exclusive area of 255㎡ located in Hannam-dong, Yongsan-gu, Seoul, after paying a Jeonse deposit of 10.5 billion won. The residence is known to be owned by Chairman Cha Ga-won, the largest shareholder of Lee's former agency, Big Planet Made Entertainment. It has been reported that Lee took out a loan of 8.76 billion won during this process, and circumstances were raised that Chairman Cha leased the villa at a price higher than the market value.

The problem is that although the Jeonse contract expired this past August, Lee Seung-gi has not received the 10.5 billion won deposit. Lee's side has announced legal action, claiming there are suspicions of fraud in the leasing process. As the landlord's obligation to return the deposit has not been fulfilled, a legal battle may remain regarding whether there were deceptive acts at the time of the contract.

It has been reported that Chairman Cha was arrested in the same month on charges of approximately 30 billion won in fraud related to celebrity intellectual property (IP) businesses. With the issue of the landlord's custody overlapping, difficulties are expected in Lee Seung-gi's recovery of the deposit. As the likelihood of a prolonged dispute over the massive 10.5 billion won deposit increases, Lee has repeatedly urged those facing Jeonse contracts to conduct thorough verifications and preparations based on his experience.

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