[비즈한국] A decision has been made to initiate a voluntary auction for a building located in Gijang-gun, Busan, owned by JS Ire (formerly Cheonhwa Dongin No. 7). The building, which served as collateral, has been put up for auction because JS Ire failed to repay its debts. JS Ire is the company that faced controversy for receiving massive dividends after investing in the Daejang-dong development project. With the prosecution conducting a large-scale investigation into corruption allegations surrounding the Daejang-dong project, most of the assets held by JS Ire are currently under provisional seizure.
JS Ire purchased this building in Gijang-gun, Busan, in 2020. The building is a two-story structure with a total floor area of 395㎡ (approximately 120 pyeong). Located near Gijang Station, it is known for high foot traffic due to the presence of a Starbucks.
The prosecution and Seongnam Development Corporation placed the building under provisional seizure in November 2022 and December 2025, respectively, to recover criminal proceeds related to the Daejang-dong development corruption case. The Gijang-gun Tax Division also seized the building in November 2024 but released it in February 2025.
Amid these circumstances, it has been confirmed that the Busan District Court issued a decision to initiate a voluntary auction for the Gijang-gun building this May. This follows a request from the creditor, Busan Bank. Busan Bank previously established a mortgage on the building in 2020 with a maximum bond amount of 5.28 billion won. The debtor listed on the mortgage is JS Ire. In other words, JS Ire borrowed funds from Busan Bank using the building as collateral. Since the maximum bond amount is typically set at 110-120% of the loan amount, it is estimated that the amount borrowed by JS Ire from Busan Bank is in the high 4 billion won range.
The financial sector estimates that JS Ire has been in default on its debt for several months or more. A financial industry official stated, "It is rare to proceed with actions like an auction immediately after a single missed payment," adding, "Usually, legal procedures are initiated after at least six months of delinquency."
JS Ire purchased this building for approximately 7 billion won, but now that it has been moved to auction, it is difficult to predict what the final sale price will be.
Meanwhile, the real owner of JS Ire is known to be a Mr. Bae, a junior in the media industry to Kim Man-bae, the major shareholder of Hwacheon Daeyu. Mr. Bae reportedly invested about 10 million won in the Daejang-dong development project and received approximately 12 billion won in dividends. He is currently on trial after being indicted on charges including the concealment of criminal proceeds.