The auction process for the villa in Cheongdam-dong, Gangnam-gu, Seoul, where actress Seo Hyun-jin lived under a jeonse lease, resumed on October 6.
The deposit was 26억2500만원, but after three failed auctions, the minimum bid fell to approximately 14억7129만원.
The resumption of the auction does not mean that the full deposit will be recovered.
3-Line Summary
1. The auction of Seo Hyun-jin’s former jeonse home has resumed
2. The minimum bid is approximately 14억7129만원
3. The amount recovered cannot be determined based solely on the winning bid
Deposit Not Returned in 2024 After the 2020 Contract
According to reports by Newsis and Money Today, the multi-family home is located in Cheongdam-dong, Gangnam-gu, Seoul, and has an exclusive area of 117.79㎡. Seo Hyun-jin signed a jeonse contract in April 2020 with a deposit of 25억원 and registered a jeonse right. When the contract was extended in March 2022, the deposit increased to 26억2500만원.
At the end of the contract in April 2024, the landlord was unable to return the deposit, and Seo Hyun-jin vacated the home after completing the tenant-rights registration procedure in September of the same year. Tenant-rights registration is a system that allows tenants who have not received their deposits to maintain their existing opposability and preferential repayment rights even after moving out.
The point worth noting in this matter is that a tenant’s rights do not immediately disappear simply because the tenant has moved out. According to reports, Seo Hyun-jin maintained her status to demand recovery of the deposit during the distribution process through the tenant-rights registration.
Bid Price Falls to the 14억원 Range After Three Failed Auctions
The appraised value of the home was approximately 28억7363만원. However, there were no bidders, resulting in three failed auctions, and the minimum bid for the auction on October 6 was presented at approximately 14억7129만원. This is about half of the appraised value.
The auction had been halted for some time. According to reports, the court decided to commence a compulsory auction in April of last year, but proceedings were suspended in July of the same year after the landlord pursued rehabilitation proceedings and applied for a stay of enforcement. Subsequently, after the landlord was declared bankrupt in December of the same year, the auction process resumed.
The date for the decision to sell was scheduled for October 13. However, the minimum bid is not the actual winning bid. The amount of the sale proceeds will be determined only after the bidding results are announced.
Resumption of the Auction Alone Does Not Confirm Recovery of the 26억2500만원 Deposit
The amount recovered from the deposit is not determined by the winning bid alone. Auction costs, claims that must legally be settled first, senior rights, and the distribution relationship are all reflected together. Money Today reported that Seo Hyun-jin was known to be the highest-priority rights holder according to the registry.
The common explanation in the two reports is that if the property is sold at around the current minimum-bid level, it would be difficult to cover the full 26억2500만원 deposit solely with the auction proceeds. Who bears the shortfall may vary depending on factors including whether the existing lease contract continues to bind the winning bidder.
If that right is not maintained, the remaining deposit remains a claim against the previous landlord. When the landlord is bankrupt, the amount actually recovered may vary depending on the remaining assets and the distribution relationship among other creditors. Therefore, the key point in this auction is the actual winning bid and the subsequent distribution results, rather than the “half-price bid” itself.
Reference
Tags #SeoHyunJin #SeoHyunJinJeonseDeposit #SeoHyunJinJeonseHome #Cheongdam-dongVilla #Cheongdam-dongAuction #JeonseDeposit #UnreturnedJeonseDeposit #Tenant-RightsRegistration #CompulsoryAuction #RealEstateAuction #JeonseRight #DepositRecovery #LandlordBankruptcy