Super Junior‘s Choi Siwon is at risk of losing millions of dollars after investing in failed business project. He bought and renovated a building which he intends to rent out the units, but unfortunately, it remained unoccupied.
It was reported that back in September 2015, prior to this military enlistment, the singer bought a 2-story building along Rodeo Street in Apgu-jeong. Si Won purchased the 40-year-old structure for KRW40 million (US$33,500) per 3.3 square meters, however it was later learned that buildings in the area are only priced at KRW30 million or approximately US$25,000 per 3.3 square meters.
This means that Si Won paid almost 30 percent more than the building's actual market value. The singer also spent additional money on its renovation and turned it into a modern 3-story building. He initially spent KRW200 million which came from his own pocket and later added a loaned amount of KRW900 million, to finish the renovation of the building.
The structure was complete in August 2016 but until now, no one is interested in renting a space there. Si Won is currently paying the loan and it amounts to KRW2 million per month, but with no tenants, this is a big burden to his finances, Chosun reported.
Reportedly, one of the reasons for the lack of tenants is the floor area of each unit which is very small for any business to use. It was said that each room features a space measuring to about 40 square meters only. The measurement also violates the right size of rental business spaces under the Korean law.
In addition, the property is situated in mostly residential area so proprietors do not see the building as good for their businesses. Another drawback is the roads, because it is only four meters wide, its narrowness will limit the access to the building.
Now, due to all the issues, Si Won's building has been put up for sale for KRW2.7 billion or US$2.3 million. The price was later lowered to only KRW1 billion (US$830,000), but with the much lower prices of the buildings in the area, it seems that the property is still hard to sell.
Meanwhile, Korea Portal reported that Super Junior is making a comeback once Choi Si Won, Lee Dong Hae and Eun Hyuk are discharged from the army. Si Won is expected to return in August while Dong Hae and Enu Hyuk are scheduled to be released from military service in July.
