Recently, skyrocketing housing prices in the Seoul metropolitan area have plunged the real estate market into unprecedented turmoil, including a rental and lease crisis. Amid this, cases of celebrities who bought buildings that produced golden eggs early on and, after a long wait, achieved investment success with capital gains far exceeding tens of billions of won are drawing envy.
First, actor Song Seungheon is well known as a ‘real estate tycoon’ who achieved at least 60 billion won in capital gains from property investments around Sinsa Station. According to the real estate industry, Song Seungheon purchased a building he registered in his name in October 2006 on Gangnam-daero in Jamwon-dong, Seocho-gu, Seoul, consisting of basement 1 to fourth floors (land area 163 pyeong, total floor area 403 pyeong) for 11.4 billion won, and five years later remodeled it and leased the first floor to a franchise cafe. Later, in 2015 he purchased an aging commercial building behind that property, basement 1 to second floors, for 3.65 billion won.
In particular, with a nearby building on Gangnam-daero trading in the mid-300 million won range in 2024, the value of the buildings owned by Song Seungheon reached about 82.86 billion won, and it was estimated that he would realize at least 67.8 billion won in gains compared with purchase prices, attracting attention. In addition, last year Song Seungheon sold a building he held under the corporate name Storm Company, a structure in Jongno on Youth Street from basement 1 to seventh floors (land area 82 pyeong, total floor area 531 pyeong), for 25.95 billion won, earning about 2.5 billion won in capital gains.
Singer Bi (real name Jung Jihoon) and actress Kim Tae-hee purchased a commercial building on Gangnam-daero in Seocho-dong, Seocho-gu, in 2021, a structure from basement 2 to eighth floors (land area 147 pyeong, total floor area 881 pyeong), in joint names for 92 billion won. Later, a year after purchase they sparked discussion by attempting to sell it for 140 billion won but then withdrawing the sale. At the time, the building’s total monthly rent alone was about 230 million won, and it is expected to be higher now. Moreover, with global franchise hamburger brands and plastic surgery clinics as tenants and the building at full occupancy, the building’s market value is estimated to far exceed the 140 billion won asking price listed in 2022. It is therefore expected that Bi and Kim Tae-hee will earn at least 60 billion won in gains.
Earlier, Bi bought a building in Cheongdam-dong, Gangnam-gu, which he had used as his agency’s headquarters, for 16.8 billion won in 2008 and sold it in 2021 for 49.5 billion won, realizing a gain of 32.7 billion won, while Kim Tae-hee bought a building in Yeoksam-dong, Gangnam-gu, Seoul, for 13.2 billion won in 2014 and sold it in 2021 for 20.3 billion won, earning 7.1 billion won in capital gains, showing their prowess as ‘investment geniuses’ side by side.
Meanwhile, singer and actor Jang Keun-suk purchased a building in Samseong-dong, Gangnam-gu, Seoul, in November 2015 for about 21.3 billion won, with 95% in his name and 5% in his mother’s name. The building, from basement 3 to sixth floors (land area 249 pyeong, total floor area 1,277 pyeong), is fully leased to Hana Bank, and as of 2024 a similar location was valued at 225 million won per pyeong. Applying that to the land area yields about 56 billion won, meaning he realized about 34.7 billion won in capital gains over nine years.
In addition, a building in Cheongdam-dong, Gangnam-gu, Seoul, purchased in April 2011 for 8.5 billion won, a structure from basement 2 to sixth floors (land area 119 pyeong), was estimated to have soared to 27 billion won as of 2024. Simply calculated, Jang Keun-suk gained 53.2 billion won in capital gains from the two buildings.
Seo Jang-hoon, a broadcaster and former basketball player known as one of the entertainment world’s notable building owners, recently drew attention when it was reported that he put a building in Seocho-dong, Seocho-gu, Seoul, up for sale for 45 billion won. Seo Jang-hoon acquired a building of basement 2 to fifth floors (land area 114 pyeong, total floor area 446 pyeong) by auction around 2000, shortly after the Asian financial crisis, for 2.817 billion won. Based on the asking price of 45 billion won, a simple calculation shows a gain of about 42.18 billion won, roughly 16 times the purchase price. However, actual profits may vary depending on acquisition tax, remodeling costs, holding taxes and capital gains tax.
In addition, Seo Jang-hoon is known to own buildings in Heukseok-dong, Dongjak-gu, and Seogyo-dong, Mapo-gu, and the real estate industry estimates that the value of the real estate he owns exceeds 70 billion won.
Actor Kim Hee-ae earned about 40 billion won in capital gains over 18 years from an investment in a Cheongdam-dong building. In 2006 Kim Hee-ae purchased three parking lot parcels totaling 196.35 pyeong on Dosan-daero in Cheongdam-dong, Gangnam-gu, Seoul, for 11.9 billion won. The lots operated as parking lots for 14 years until a new building of basement 4 to fifth floors was constructed in 2020, housing high-end tenants such as a dermatology clinic and a flagship store. Considering the prices of nearby new buildings as of 2024, the building’s value was estimated at 254 million won per pyeong, about 50 billion won. Compared with the 2006 purchase price, she realized about 38.1 billion won in capital gains over 18 years.
Actor Kwon Sang-woo demonstrated exceptional foresight by making 35 billion won from a car wash. In 2015 Kwon Sang-woo purchased a factory site in Seongsu-dong of 946 square meters (about 286 pyeong) in his name for 8 billion won. After demolishing the existing factory and building a two-story structure, he used the second floor as the office for his agency S Company, where he is the representative, and the first floor as a self-service car wash that he operated himself. After demolishing that building, Kwon Sang-woo began construction of a new building last year, and it was recently reborn as a large pop-up store and corporate event space.
The building, totaling 300 pyeong across the first and second floors (about 150 pyeong per floor), is reported to command a daily rental fee of about 15 million to 20 million won. Considering nearby commercial buildings traded at about 140 million to 162 million won per pyeong, the current value of the site is estimated at at least 43 billion won. That leaves a gain of 35 billion won, more than eight times the purchase price. In addition to Seongsu-dong, Kwon Sang-woo is reported to own real estate worth a total of about 70 billion won in Cheongdam-dong, Gangseo-gu’s Deungchon-dong and Bundang, Seongnam.
[Photo] OSEN DB
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