Daesung’s Big Payday: Big Bang Star’s 65.4 Billion Won Windfall Amidst Controversy
Big Bang Daesung / Photo = Star News
The building in Nonhyeon-dong, Gangnam, owned by Daesung (35), a member of Big Bang, is expected to make a profit of more than 65 billion won in seven years.
News 1 reported on the 6th (Korean time), “According to Building Road Real Estate Brokerage, Daesung purchased a building with an area of 275 pyeong located on Dosan-daero, Nonhyeon-dong, Gangnam-gu for 31 billion won in November 2017.”
At the time of purchase, the price per pyeong of land was approximately 112.58 million won, of which approximately 14 billion won was obtained through loans and the remaining 17 billion won appears to have been covered in cash.
This building has excellent visibility as it is located on Dosan-daero across from Dosan Park, and is very accessible as it is an 8-10 minute walk from Apgujeong Rodeo Station on the Suin Bundang Line and Gangnam-gu Office Station on Line 7. Due to the nature of the Nonhyeon-dong commercial district, there is a large floating population and various brand stores are concentrated nearby, making it an area with great commercial value.
Since purchasing the building, Daesung has maintained it neatly by repainting the exterior in dark gray without any additional expansion. The use in the building register also changed from a neighborhood living facility to an office facility according to the change in the tenant’s business. The industry estimates that Daesung purchased the building with long-term investment value in mind.
In this area, a nearby building was traded for about 324 million won per pyeong in 2022, and the current asking price is 379 million won per pyeong. If this is applied to the Daesung Building land area, the current market price is estimated at approximately KRW 96.4 billion, and Daesung is expected to reap a market profit of approximately KRW 65.4 billion compared to the purchase price.
Meanwhile, this building was embroiled in controversy in 2019 when it was reported that it operated an illegal entertainment bar and arranged prostitution. It was revealed that the entertainment establishment in question had been operating secretly without a sign since 2005 by disguising itself as a restaurant and photo studio. At the time, Daesung’s side announced, “We purchased the building before enlistment and were not aware of this fact,” and “We will take legal action against the business immediately.” Afterwards, those involved in the entertainment establishment were legally punished, and internal demolition work was carried out. Daesung, the ‘building owner’, was found ‘not guilty’ in 2020.