[BizHanKook] It has been confirmed that a Hannam The Hill apartment unit owned by singer and musical actress Ock Joo-hyun (46) has been seized by the Tax Management Division of the Yongsan District Office. Last year, Ock entered into a contract to purchase the Hannam The Hill apartment from Hur Hee-soo, president of SPC Group, for 19 billion won, and completed the transfer of ownership registration in April of this year. However, as she failed to repay the loan secured by the apartment, it was placed under voluntary auction in October, and has now been seized by the Yongsan District Office.
According to the real estate register, the Yongsan District Office’s Tax Management Division seized Ock Joo-hyun's Hannam The Hill apartment on November 6. Typically, a district office’s tax department seizes real estate when taxes, such as local taxes, are in arrears.
Previously, on October 14, an order for a voluntary auction of Ock's Hannam The Hill apartment was issued upon the application of Korea Financial Asset Management Loan. Ock had taken out a loan from SJ Friends Loan in April of this year, using the Hannam The Hill apartment as collateral. It appears that Korea Financial Asset Management Loan later acquired this debt and applied for the voluntary auction of the apartment as part of the debt recovery process.
The decision to initiate the voluntary auction occurred in October, which predates the seizure by the Yongsan District Office. However, the order of the auction and the seizure does not solely determine the priority of dividends between the creditor and the Yongsan District Office. The Framework Act on Local Taxes stipulates that “collection money of a local government shall be collected in preference to other public charges and other claims.”
There are exceptions regarding real estate. According to the Framework Act on Local Taxes, the priority for real estate is determined by comparing the legal date of the tax with the date of the establishment of the mortgage. However, if the delinquent tax is property tax on an apartment, it qualifies as a "danghaese" (tax on the property itself), which takes precedence over mortgages regardless of the timeline. Therefore, the priority between the creditor and the Yongsan District Office could change depending on the type of tax Ock failed to pay, its legal date, and the timing of the mortgage establishment.
Gemstone E&M, the agency handling publicity for Ock Joo-hyun, previously stated in a position statement regarding the Hannam The Hill auction: “We purchased the Hannam-dong residence (Hannam The Hill) in April of this year during the process of pursuing a business and attracting investment. Following the recent successful M&A between Ock Joo-hyun's corporation and an investment firm, we are in the process of clearing existing matters, including debts related to the residence.” They added, “We are currently in the process of specific debt repayment and settlement with the investment firm, and the investment firm plans to repay the entire relevant loan amount in accordance with the business plan.”
On the 9th, Gemstone E&M responded to Bizhankook by stating, “We are currently confirming the details as it pertains to a private matter.”