Gong Hyo-jin Sells 63 Billion KRW Building for 160 Billion KRW: Crowned the Queen of Investments
Actress Gong Hyo-jin has emerged as the queen of showbiz investment
According to Valuemap and Edaily, Gong Hyo-jin sold her building located at 366-7 Seogyo-dong, Mapo-gu, Seoul, for 1.6 billion KRW. This translates to approximately 130 million KRW per 3.3 square meters of land.
The building was purchased by the leasing company “Roy714” for 6.3 billion KRW in January 2016. “Roy714” is a corporation with Gong Hyo-jin owning 50% of the shares and serving as the representative.
In January 2016, “Roy714” used another building it owned in Hannam-dong as collateral to borrow 5 billion KRW and invested 1.3 billion KRW of personal funds to acquire a two-story standalone house for a total of 6.3 billion KRW. At the time, the market price per 3.3 square meters of the building was in the 40 million KRW range, much lower than the surrounding area, which was in the 70 million KRW range.
Immediately after the purchase, Gong Hyo-jin demolished the two-story standalone house and completed the construction of a new building in September 2017, spanning three underground floors and six above-ground floors for a total of nine stories. By acquiring a significantly larger floor area compared to the previous building, this bold new construction increased the building’s value.
Moreover, it was suggested that when real estate is bought and sold in the name of a corporation rather than an individual, income taxes can be reduced by half.
Experts predicted that even after deducting the cost of constructing the new building, Gong Hyo-jin would leave a profit of at least 5 billion KRW. Valuemap researcher Jeong Gyeong-jin explained, “The average price per square meter for business and commercial facilities recently transacted in Mapo-gu was 80-90 million KRW, with most of them located in Seogyo-dong, Yeonnam-dong, and Hapjeong-dong. Considering that this building was remodeled and newly constructed, along with its future value in the vicinity of Hongdae, the price of 130 million KRW per 3.3 square meters does not seem excessively high.”
Meanwhile, Gong Hyo-jin got married to singer Kevin Oh in October of last year.
