[비즈한국] It has been confirmed late that Chanel Korea had established a collateral security right (geunjeodang) on a house owned by Heo Yu-jeong, the eldest daughter of Samyang International Chairman Heo Kwang-soo. While banks or financial institutions are typically listed as the holders of collateral rights on private residences, it is notable that the local subsidiary of a luxury brand established such a right on a private real estate property.
According to Bizhankook’s reporting, Chanel Korea established a collateral security right with a maximum debt amount of 234 million KRW on a detached house in Pyeongchang-dong, Jongno-gu, Seoul, in 2019. The maximum debt amount can differ from the actual debt amount. The debtor on the property registry is the homeowner, Heo Yu-jeong.
Heo Yu-jeong is a member of the GS Group owner family. She is the eldest daughter of Samyang International Chairman Heo Kwang-soo and a cousin once removed of GS Group Chairman Heo Tae-soo. Her younger brother is Heo Seo-hong, CEO of GS Retail. Unlike her brother, Heo has not appeared on the front lines of management. However, she holds an 8.75% stake in Samjung Construction, a GS Group real estate company.
Born in 1974, Heo married Bang Jun-oh, president of the Chosun Ilbo, in 2000. The marriage drew significant attention at the time as a union between prominent business and media families.
The house on which Chanel Korea established the collateral right was gifted to Heo by her father, Chairman Heo Kwang-soo. Chairman Heo had owned the house since 1985 before gifting it to Heo in 2018. Chanel Korea's collateral right was established about a year after Heo received the house as a gift. The collateral right was maintained for six years before being cancelled in June of last year due to the termination of the obligation.
A collateral security right is a right secured by a creditor on real estate as collateral in case the debtor fails to fulfill their obligations. Typically, banks or financial firms are listed as the holders of these rights during real estate mortgage loan processes. However, it is eye-catching that Chanel Korea, rather than a financial institution, was listed as the holder of the collateral right on Heo's house.
Chanel Korea, established in 1991, is the domestic subsidiary of Chanel, with its main business purpose being the sale of fashion products, cosmetics, and perfumes. In the audit reports disclosed by Chanel Korea, no mention of Heo's name or any collateral/mortgage details regarding private real estate could be found separately. There is also no separate entry for loans in its balance sheet.
In some cases, companies operate "in-house loan" programs to lend employees funds for home purchases, establishing collateral rights on private property to ensure the recovery of the debt. However, it has not been confirmed whether the collateral right established on Heo's house was of such a nature.
Chanel Korea did not respond to questions regarding whether Heo was employed by the company, the background of the collateral establishment, or the nature of the debt. A request for comment was also sent to Samyang International, but no response was received.