Actor Ryu Jun Yeol’s family corporation has drawn renewed attention after reports resurfaced that it generated tens of billions of KRW in profit from a building investment in Seoul’s Gangnam district.
According to the March 8 broadcast of the investigative current affairs program 'Straight' on MBC, celebrities have increasingly been establishing one-person agencies or private corporations to purchase and resell real estate such as buildings and land.
During the episode, the production team visited a building located in Yeoksam-dong, Gangnam District, Seoul. The property, which has two basement levels and seven floors above ground, was reportedly sold for about 15 billion KRW (approximately 10.3 million USD) in 2022.
At the time, the seller was a corporation called Deep Breathing, a family-run company in which Ryu Jun Yeol served as an internal director while his mother acted as CEO. The company originally purchased the property in 2020 for about 5.8 billion KRW (around 4 million USD). After demolishing the existing building and redeveloping the site, the corporation sold it roughly two years later and reportedly generated a substantial capital gain.
The broadcast also highlighted the high proportion of loans used in the purchase. Deep Breathing is estimated to have financed about 4.8 billion KRW (approximately 3.3 million USD), which represents around 80 percent of the purchase price, through bank loans. Taking this into account, analysts suggested that the company may have invested only about 1 billion KRW (roughly 690,000 USD) of its own funds.
Experts noted that purchasing commercial real estate through a corporation can make it easier to secure loans compared to individuals. A former bank branch manager said in an interview that individual business owners are typically subject to financial evaluations. In contrast, corporations may not go through the same process, and loan interest can be recognized as a corporate expense. According to the former banker, many borrowers obtain loans covering up to 80 percent of the purchase price.
Ryu Jun Yeol’s side previously stated through his agency that the corporation had been established to manage his personal income. The actor also explained that he had initially planned to build the property with friends to start a clothing business. However, the project was postponed due to the COVID-19 pandemic, which ultimately led to the sale of the building.
The broadcast described this approach as a form of debt-driven investment and cited other celebrities as examples. Actress Hwang Jung Eum reportedly took out loans of about 3.5 billion KRW (around 2.4 million USD) through a family corporation to purchase a building in Sinsa-dong, Gangnam District. She later sold the property after three years and seven months and reportedly earned a profit of roughly 5 billion KRW (about 3.4 million USD).
Actor Lee Byung Hun also purchased a building in Yangpyeong-dong, Seoul, in 2018 through a corporation for about 26 billion KRW (approximately 18 million USD). Reports said he financed around 17 billion KRW (about 11.7 million USD) through loans. He later sold the property after about three years and reportedly earned profits exceeding 10 billion KRW (around 6.9 million USD).
Reports also indicated that in 2022, Lee purchased another building in Oksu-dong, Seoul, for approximately 24 billion KRW (about 16.5 million USD). The transaction reportedly involved loans of about 19 billion KRW (around 13.1 million USD).
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