Rain and Kim Tae Hee is expected to suffer significant damage with their Seocho-dong due to the decline in the real estate market.
A netizen claimed themselves as a real estate official and posted on an online community, saying “The price at which Rain purchased the Samyoung building (92 billion won) was ridiculously expensive”, adding “Considering the rental income and vacancy rate, the price should be less than 50 billion won”.
Another netizen commented, “The person who sold the Samyoung building to Rain is known to be a futures investment master who exceeded 100 billion won in assets in 2005”, adding “Seems like he thought it would be more advantageous to move to financial assets after cashing real estate assets, and that’s why Rain suffered a heavy loss”.
The building in Seocho-dong, Seocho-gu, Seoul owned by Rain is said to have recently been put up for sale at the price of 140 billion won. Rain reportedly purchased the building with 92 billion won last year. He acquired the building by owning a 60% stake himself and 40% through a corporation established by his wife Kim Tae Hee.
Experts have also made predictions about Rain’s losses.
An appraiser at Samil Appraisal Corporation said, “Rain’s transaction price seems to be a little high, but the building seems to have been purchased with a focus on profits as a disposable real estate”, adding “In this unstable economic condition when vacancy rates are also increasing in nearby commercial districts, Rain may have to bear a loss of up to 100 million won”.
CEO of a real estate company said, “Rain and Kim Tae Hee couple seems to have purchased it predicting a price increase amid the low-interest real estate market, but the real estate market is currently suffering a slump with high-interest rates”, adding “Nevertheless, it is true that the location around the building is solid”.