[Dispatch=Kim Ji-ho Reporter] Singer and actor Lee Seung-gi ultimately failed to recover his jeonse deposit. Lee Seung-gi's side announced on the 6th that they would pursue legal action, stating that "Cha Ga-won's spouse evaded responsibility for returning the jeonse deposit."

Lee Seung-gi's legal representatives, attorneys Yoon Yong-seok and Jang Jae-won, stated on the day, "Today the maturity date of the jeonse contract concluded between Lee Seung-gi and Cha Ga-won has arrived," and revealed that Cha Ga-won's side ultimately did not return the jeonse deposit.

Cha Ga-won's legal representative recently stated in court that "the jeonse deposit will be returned without issue." Lee Seung-gi's side said, "This was merely false rhetoric," and stated that "Cha Ga-won's spouse evaded responsibility today, saying that returning the jeonse deposit is impossible due to Cha Ga-won's absence."

They continued, "Cha Ga-won's spouse has also conducted most legal transactions together with Cha Ga-won. Considering this, this is an act devoid of conscience," and appealed, "Lee Seung-gi actually prepared for moving, but even those costs remain as damages."

Lee Seung-gi's side suspects planned jeonse fraud by the Cha Ga-won couple. They criticized them, saying "(the Cha Ga-won couple) induced a famous entertainer to take out a large loan, concluded a jeonse contract, and then embezzled the jeonse deposit."

Lee Seung-gi contracted a villa in Hannam-dong, Seoul, owned by the Cha Ga-won couple in 2024. The jeonse deposit was 10.5 billion won, of which approximately 7.3 billion won is reported to have been borrowed funds from a bank.

Meanwhile, Cha Ga-won was arrested on the 3rd on charges of violating the Special Aggravated Punishment Act for Specific Economic Crimes (fraud, etc.). The court issued an arrest warrant citing concerns about evidence destruction.

Cha Ga-won proposed a business utilizing the IP of an artist under "One Hundred" and concluded a contract with content company "Normus." He is accused of receiving an advance of 24.2 billion won and failing to properly carry out the promised business.

<Below is the full statement from Lee Seung-gi's side>

Hello. We are attorneys Yoon Yong-seok and Jang Jae-won of Law Firm Hyunmyung, legal representatives for Lee Seung-gi.

Representing the artist, we present an official statement regarding the arrest of Cha Ga-won and matters related to the jeonse contract.

First, although the jeonse contract issue between the artist and Cha Ga-won's side is an extremely private matter unrelated to entertainment activities, we believe there may be those fatigued by this content being frequently reported. The artist himself has considered the "unpaid wages issue for staff" as the most critical matter, and secondly the "exclusive contract dispute" related to normalizing entertainment activities. Although the "jeonse contract issue" carries the largest financial damage among various matters, we believed it more important to prevent innocent victims such as staff from occurring and to normalize entertainment activities than the artist's personal property damage.

However, as Cha Ga-won was recently arrested, and coincidentally today marks the maturity date of the jeonse contract concluded between the artist and Cha Ga-won, we receive many inquiries related to this. We have therefore been forced to organize related content in statement form.

Above all, the artist believes that this jeonse deposit non-return issue is not merely a civil breach of contract but falls within the realm of criminal offense.

While not a formal legal term, we commonly call "receiving and embezzling a jeonse deposit without intent or ability to return it" a "jeonse scam." Recently, there is also broad social consensus that penalties for this type of crime should be strengthened. However, in this case, beyond the landlord simply lacking intent or ability to return the jeonse deposit, it appears that "highly sophisticated fraud schemes" were "strategically deployed" to induce a famous entertainer to take out a large loan and conclude a high-value jeonse contract, then embezzle the deposit. Therefore, this case has more serious criminal nature than ordinary jeonse fraud involving merely borrowing and failing to return the deposit.

In particular, before the jeonse contract was concluded, and at a time when the artist had not even considered a jeonse contract itself, Cha Ga-won's side appears to have already been preparing to execute a jeonse loan under the artist's name. Although Cha Ga-won's side had already sold the unit to Hyorim Industry for approximately 7 billion won, they suddenly rescinded the sales contract, and while concealing this, proceeded with appraisal under the title "Taemin collateral property" intending to conclude a jeonse contract with an affiliated artist at a higher amount than the previous purchase price, ultimately proceeding with appraisal under "Lee Seung-gi collateral property." Accordingly, before the loan review process, they appear to have known that a loan of approximately 7.3 billion won would be executed and prepared the jeonse contract accordingly.

And the Cha Ga-won couple received title transfer of the high-value real estate from the trust company immediately after receiving the jeonse deposit. In light of these circumstances, it appears Cha Ga-won's side, while searching for funds necessary to acquire the real estate above, systematically planned a fraud scheme involving inducing a famous entertainer to take out a large jeonse loan, then personally using that loan money and failing to return it upon contract termination. We expect that in the future, investigative agencies will clarify the facts and charges related to this.

Meanwhile, although Cha Ga-won is arrested, the accomplices who aided him continue to live comfortably with the fruits of Cha Ga-won's crimes without remorse for their wrongdoing. Looking at only the jeonse contract matter, multiple conspirators including Cha Ga-won's spouse, real estate brokers, and those involved in loans and appraisals appear to have each played their role like gears in a machine.

Additionally, Cha Ga-won's legal representatives publicly declared in the sacred courtroom that "the jeonse deposit will be returned without issue," and notified the artist's side just days ago that "there is no problem with returning the jeonse deposit," but this was merely false rhetoric.

Today, Cha Ga-won's spouse evaded responsibility, saying "returning the jeonse deposit is impossible due to the absence of Cha Ga-won, the contract party." Considering that the spouse has also conducted most legal transactions together with Cha Ga-won, this is an act devoid of any conscience. The artist, trusting this, incurred costs and actually prepared for moving, but those costs remain entirely as damages.

In particular, Cha's legal representatives have publicly boasted through YouTube videos, saying things like "(upon fact-finding) we should investigate our client thoroughly" and "I defend Chairman Cha Ga-won practically holding him half," indicating there are no secrets between themselves and their client. Then the legal representatives cannot continue to feign ignorance of the continued lies related to Cha Ga-won's side. [Whether the previous legal representatives, who had already publicly declared they would quit legal practice if Cha Ga-won were arrested, will continue to handle related responses in the future remains unclear].

With this arrest of Cha Ga-won, various staff members and artists have found some measure of relief. However, numerous crimes committed by the criminal organization led by Cha Ga-won remain, and it appears various investigations will continue in the future.

The artist will work toward severe punishment for Cha Ga-won's side to prevent recurrence of this type of crime in the future, while also doing his best in his entertainment activities.

Thank you.

<Photo=Dispatch DB>