Kim Junsu’s Luxury Jeju Island Hotel Provisionally Seized for Unpaid Loans
The courts have accepted the lawsuit that a construction company filed against Toscana Hotel, which JYJ‘s Kim Junsu invested 28.5 billion KRW (~25 million USD) into building. This means that the claim that the Jeju-based construction company to have the hotel provisionally seized has been approved.
This ruling will lock down the assets and will make it impossible for Kim Junsu to sell or give away the hotel until a final judgment on the original lawsuit is made by the courts.
On June 4, Jeju Regional District Court the third civil case department (chief judge Heo Il Seung) approved the provisional attachment that construction company A filed against Kim Junsu.
The department of justice said, “Even if the claim made by the debtor that he paid all of the construction fees to the creditor is true, that must be proven with concrete investigation with evidence.” They ruled, “Until the presence and extent of the preserved right [of the creditors] is confirmed, it is necessary to maintain the provisional attachment.”
Meanwhile, the construction company A participated in building the Toscana Hotel from April of 2013 to August of 2014. The luxury hotel has an area of 21026 square meters and has four above-ground stories and one below-ground story. It consists of 61 suites in the main building and four sets of full villas.
The construction company sued Kim Junsu on November 7 of last year, saying, “We loaned Toscana Hotel the facility funds after getting an IOU from Mr. Kim, but we did not get that money back.” They then filed for provisional attachment of Kim Junsu’s property and filed a lawsuit together with Company B, who also participated in building the Toscana Hotel, for a court order to pay back the loans.