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JYJ’s Junsu Entangled in Litigation Involving the Construction of His Luxury Hotel on Jeju Island




The news resource reported that JYJ member Junsu is entangled in costly and time-consuming litigation involving the construction of his luxury hotel on Jeju Island.
Jeju Island’s paper Jeju Citizen Daily reported on December 10, “JYJ’s Junsu has been sued for not paying back some of the costs of construction on the 28 billion won luxury hotel.”
They continued, “We are expecting further lawsuit in court, and if he loses his case, he will have to repay over 5 billion won (approximately $4.5 million USD).
According to the report, Junsu entrusted the construction of his hotel to two construction companies A and B from April of 2013 to August of this year. In order to pay for constructions, he borrowed money from the National Agricultural Cooperative Federation by mortgaging his hotel and the property.
However, his promissory note issued by the Korea Exchange Bank during the investment period expired, leaving Junsu with the possibility of bankruptcy. He then asked the two construction companies to lend him funds.
Consequently, construction company A and B loaned money to Junsu with an IOU specifying that he will repay them by September 30. They each respectively lent him 1.87 billion won and 3.03 billion won.
The two construction companies explained that although they have notified him multiple times, he has yet to pay back any of his debts.
Furthermore, the construction companies also filed for unpaid construction costs, 286 million won for A and 561 million won for B.
The two construction companies then filed an order of payment of 5 billion won against Junsu. Construction company A also requested for provisional attachment of his property with a value of 1.8 billion won.
On November 17, the Jeju District Court accepted the case, and ordered for the provisional attachment of Junsu’s property. Nine days after the court’s decision, Junsu submitted a statement of protest. While part of his property has been seized according to the court’s decision, Junsu is preparing a more detailed response to back up his statement of protest.
Junsu’s father, who is in charge of managing the hotel, told the media outlet in a phone call, “The claims put forth by the construction companies are one-sided,” adding, “we are preparing to take legal actions against them.”
He also commented, “It is true that we got a loan from the National Agricultural Cooperative Federation, but we never borrowed money from the construction companies. We did write an IOU with the companies, but we have evidence that the money was not borrowed. We cannot make an official statement currently but the decision will be ultimately made in court.
He also stated, “With an expert, we are looking into whether the construction was done properly, and if the materials were used efficiently on the hotel. When we complete this process by the end of the month, we will be able to draw up the construction costs.
JYJ’s agency C-JeS Entertainment told the media that they were not notified of the matter, and that they will comment after confirming.
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