K-ent Reporter Explains the Criticism of Ryu Jun Yeol’s Real Estate Speculation Profit is Due to the Massive Leverage and Also Contravening the Public Image that He Didn’t Care About Monetary Trappings

A really good article came out this week explaining in detail why K-netizens are criticizing K-actor Ryu Jun Yeol and why that criticism is valid despite him doing nothing illegal. Last week it was revealed that Ryu Jun Yeol’s personal company with his mom as the managing director bought a house in Seoul with a 90% mortgage and then rebuilt it with another 70% taken out as a loan for the construction. It was then sold and he made around $4M USD in profit. The article explains that Ryu Jun Yeol put in 10M won (around $9,000 USD) to incorporate the company and then the company used its shares as collateral to take out the loan to buy the property and then used the property as collateral to take out a construction loan. The bank approved it because Ryu Jun Yeol was making so much money on CFs in the last three years from 2019-2021 so the company was profitable from his income. So in essence he leveraged a $9K investment into leverage to make close to 4 billion won ($4M USD) in profit. So it’s the scope of the leverage that upsets the netizens since it’s not available to the ordinary person, banks would never approve this using shares of a newly formed company. Furthermore, Ryu Jun Yeol has said in past interviews that he doesn’t care about money so what he did feels very hypocritical, because ultimately K-netizens are fine with stars buying buildings and making money as long as they are upfront about it. So there’s that, I don’t think this is a scandal he can’t weather but it does put his public image in a new light with K-netizens.


Comments

K-ent Reporter Explains the Criticism of Ryu Jun Yeol’s Real Estate Speculation Profit is Due to the Massive Leverage and Also Contravening the Public Image that He Didn’t Care About Monetary Trappings — 26 Comments

    • Smart gut! Leave him alone. As much as I love Koreans they get so judgemental of celebrities. I think he was smart with his money!!!!

  1. Are people delusional that money doesn’t makes the world go round?

    Personally I think that’s business savvy. And if fans are delusional that their stars are pure, live on love and fresh air, altruistic, don’t have sex and have no hidden kinks- they are living in a dream land.

  2. I’m going to have to chalk this up to a cultural difference I accept yet don’t understand. In the USA, putting 10% down and then Buy, Renovate, Rent, Refinance, Repeat is such a prevalent property investment model it has an acronym (BRRRR). It’s not controversial here, but every country has their own sensibilities.

    I’ve seen lists before of richest Korean idols/celebrities trumpeting their real estate holdings (Jaejoong and Kim Soo Hyun) inherited family wealth (Choi Siwan) and endorsement deals (Song Hye Kyo)… but those are more acceptable ways for already-millionaires to get richer.

    • Exactly. I don’t see the problem either since what he did doesn’t receive isn’t considered “scandalous” where I live. It’s definitely a cultural difference.

    • I mean, don’t you think that maybe it should be frowned upon, though? It’s currently very difficult for the majority to acquire housing, and those that have the means are busy going around purchasing cheaper properties and pricing them completely out of the market, all because they have the resources or connections to do so. Certainly, like many countries, S. Korea has a very screwed-up relationship with wealth (see: Parasite, or any number of dramas about class) and they are a deeply capitalist nation, but this is a gross business practice any way you spin it. Perhaps if he then rented it at a low cost afterward, but clearly he was just in to make a profit when he’s already rich. Housing should be viewed as a human right and this attitude about treating it like a business is toxic. We have the same thing here in the US with health care, albeit a bit less obviously. But the way we view housing now is killing people, literally, and dismantling culture and communities.

      TLDR: perhaps it is a cultural difference and likely wouldn’t have been looked at twice in a place like the US, but that doesn’t mean it wasn’t unethical and screwed up and part of a toxic wealth system.

      • There are lots of things that people need and use and benefit from that are not run as public entitlement/right.

        Internet and cell phone access, healthy food, vehicles, menstruation supplies, clothes, and yes (In the US) education.

        I think sensible people in different countries can not agree 100% about which are human rights and how to pay for it.

        I saw a picture of the building and he expanded it to be much larger. I am not mad at him for it, but I accept that a lot of people are really opposed to landlords or property developers.

      • So basically he was gonna start a business (allegedly) in this building and didn’t because of Covid. That’s the story on why he sold. If he had kept it, it would have been okay as a real estate investment and him being the landlord. The problem isn’t that he made money, it’s that he made a quick buck flipping. Yeah, whatever. I get why people are a bit irked because of his image but you don’t like this, make it illegal or quit complaining.

  3. Doesn’t care about money doesn’t mean he throws away a legal profit. He could donate etc but it is his right to earn that sum. If netz wants yo hang someone for it, blame the govt and their policies. And banks will give him that leverage because a bank is about profit and how likely someone will return the loans. He is deemed financially stable hence he got the loan etc. Are k netz living in fantasy land that everything not their way is always the fault of others? Then blame the banks. It is clear what he’s doing is legal. That’s the end of it.

  4. dude is money-hungry and fake. not surprised. only idiots would believe celebrity images and that they don’t care about money.

    • It’s his personal choice. Does anyone support you when you are at bottom? No, right? Then what’s the point in exaggeration of a normal thing and why are they trying to pull them down when he is already an image. He didn’t cheat , kill or harm anyone. He is a self made actor and has worked to reach to where he is now. Why should we fuss over such a matter and down his image? I have noticed this news been on limelight for few a days. But such things harm actors career. Let’s not make an issue out of nowhere. Support for Ryu Jun yeol. Love from India.

  5. I still don’t see how this is something to be criticized about. In my country this type of property investment is normal. About bank approving his loan, of course they would, when he submitted his source of income and bank deemed him to be financially capable of paying the loan, they would approve of course it’s normal procedure of banking business. Netizen can’t be sour about why I can’t but you can, because the fundamental principle here is, go back to your income source, if you’re capable you’ll be able to do the same. This is not celeb privilege, anyone with money can do the exact same. He don’t care about money? I’m not gonna head-dive myself into his personal principle and value and judge them, but really so what? Don’t care doesn’t mean he doesn’t need them.

  6. This is ridiculous! He did nothing illegal and it’s no one’s business what he does in his personal time if it is not to the detriment of others! Good for him! He is an astute business man! Instead of tearing him down for coming out on top through this venture why not congratulate him for a job well done. Honestly, anyone who has issues with this needs to grow up, get over themselves, their jealousy and bitterness. Mind your own damn business and find something better to do with yourselves!

    • I don’t get it. It’s business, meant to make money. Here in the U.S. It’s common for real estate investors. If it’s cultural differences, then I strongly suggest they take a look at how poor students, poor people, subordinates at work and anyone that some high level (they think) individuals still gets to slap, discriminate and treat like s**t – AT THIS DAY AND AGE. For a country so advanced, they are so backward in so many ways. No wonder Hell Korea exists. Gee.

      • WE might not understand it since WE are not of the culture and whatever he did, if it affects anyone at all, does not affect US directly. It’s THEM KOREANS it affects.

        Enough of this I-stan colonizer mentality where y’all impose your cultural perspectives on another country and try to tell Koreans how they should feel about things that affect their lives simply because y’all are horny for oppa. They’re not calling for his head. This will not ruin his career, not even close. He’ll brush it off like dust and move on.

  7. Knetizen needs to understand that this type of transaction must be run by an investment advisor and he just need to give his greenlight to run the transaction.

    A high net worth individual usually has his own personal investment advisor either appointed by his designated bank or he appointed the advisor through a private equity to manage his assets.

  8. Well this goes to show “different people, different culture”. We can’t blame the Knetz because it is their upbringing and it is how RYJ described himself before. I hope he can get out of this mess.

  9. Yeah, it’s naive to believe the actors image created by their agencies. But there’s still people who believes it and some would not wait the moment that image is broken to criticize. In this case, due to his image I would have expected him to fight for the housing inequality in his country but he did the opposite.

  10. I read a lot of the comments and looks like the Korean culture is still moving in the 19th century. In 2022 you really, really need money to live in this world. Ryu didn’t drive up the prices on realistate, while you complaining dont hide behind your computer and target one person take it to your government. An average person in any country can have a hard time buying property. Even if he said in an interview that he was not going to be driven by money he still need it to live. I thank the pandemic have slow down a lot of filming how do you pay your bills if you don’t have a plan B. I’m so very happy for Ryu I hope his true fans will support him ?%. If I’m correct South Korea is voting this month for a new President get out and vote for someone that will help make the future a little brighter. “Just my opinion”

  11. I think some of the criticism is fair and some isn’t. I understand that ordinary citizens are angry because they wouldn’t be given such leverage, but the bank looks at how much you make, which is another issue altogether with celebrities making way too much money. Housing costs are an issue where I live too, so I understand the anger. That anger is probably better directed at the government though because if it wasn’t RJY it would have been someone else. That’s what happens in a capitalist society where the laws allow such real estate speculation. Given his image it’s probably fair to call him out though why anyone believes celebrities images is beyond me.

  12. I do understand why the public is upset because he got to use his celebrity privilege to do something an everyday person couldn’t do and then a he acts as if he’s kind of above monetary trappings but at the end of the day the rich get richer and it’s not illegal so oh well.

  13. Smart gut! Leave him alone. As much as I love Koreans they get so judgemental of celebrities. I think he was smart with his money!!!!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.