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Psy's UN Village villa seized due to unpaid fines, then released

[비즈한국] It has been belatedly revealed that singer Psy, known as a "real estate investment expert," had a property he previously resided in seized due to unpaid administrative fines. The fines in question were "compulsory performance penalties" imposed for failing to comply with corrective orders regarding illegal construction. While the seizure was lifted five months later after the fines were paid, the corrective order (restoration to original state) remains unfulfilled. Psy purchased a new home worth over 10 billion won while the villa was under seizure.

In September 2008, singer Psy (real name Park Jae-sang) and his wife purchased a duplex unit (252.56㎡) at "The House," a luxury villa complex in UN Village, Hannam-dong, Yongsan-gu, Seoul, for 2,200,272,727 won, along with an adjacent office space (20.67㎡) for 372,545,455 won. The couple lived at The House before moving to Parc Hannam in 2020, after which they rented out The House.

However, a complaint was filed with the Yongsan-gu Office alleging that the home had been illegally expanded. The staircase, which served as a common area connecting the duplex unit and the office, had been enclosed to use the two spaces as a single residence. Upon conducting an on-site inspection, the Yongsan-gu Office confirmed the allegations and notified the owners, Psy and his wife, of a corrective order. In December of the following year, it was additionally discovered that reinforced concrete had been installed inside the home to carry out unauthorized expansion. They had violated the Building Act twice: once for unauthorized change of use and again for illegal expansion.

Last May, the Yongsan-gu Office seized the property. This action was taken because the couple had failed to pay the compulsory performance penalties imposed after they did not comply with the corrective orders for over a year. The exact amount of the penalties is private information and cannot be determined. However, as it is highly likely that the construction company or developer illegally expanded the space to provide extra service area to buyers, it is estimated that the penalties and surcharges accrued over the 16 years from 2008 to the present were likely imposed all at once. The luxury real estate industry suggests that Psy and his wife, who had been paying comprehensive real estate taxes based on standard residential criteria, may have also been subject to additional heavy taxes for luxury housing (duplexes exceeding 274㎡).

It has been confirmed that Psy and his wife paid the compulsory performance penalties on October 28. While the seizure was lifted five months later, the property remains designated as an illegal building. In other words, the corrective orders have still not been fulfilled. BizHankook contacted Psy’s agency, Pnation, to hear their side, but received no response after three days.

While The House was under seizure, Psy purchased a new home worth over 10 billion won. According to the real estate registry, Psy pre-purchased a second-floor unit (exclusive area of 239.25㎡) at "Upper House Namsan," a luxury villa located in Itaewon-dong, Yongsan-gu, Seoul, in July 2022, and took ownership from the developer after paying the balance this past September. In effect, he secured the funds for a new home while still in arrears on his administrative fines. The sale price for Upper House Namsan is known to be in the low 10 billion won range. It recently made headlines after being purchased by Seo Min-jung, a division AP team lead and the eldest daughter of Amorepacific090430 Chairman Suh Kyung-bae, and actor Ha Jung-woo.