Lee Seung-gi's Camp Clarifies Controversy Over Construction Costs for Jangchung-dong Building: "Payment Has Already Been Made to the Contractor"
Statement on Lawsuit Filed by Subcontractor Seeking Payment for Construction Work
"It appears that subcontractor payments were not made due to internal issues at Piak Construction"
"Distorting the Facts to Make It Seem as If Damage Was Caused by Lee Seung-gi's Unpaid Debts"
[Edaily Starin KIM HYUNSIK Reporter] The representatives of singer and actor Lee Seung-gi have refuted claims by a subcontractor involved in the construction of a new building in Jangchung-dong, Seoul, alleging unpaid construction fees, stating, “We have already paid an amount exceeding the progress payment to Piack Construction, the general contractor with whom we had a direct contract.” (Photo = E-Daily DB)Lee Seung-gi’s legal representative, Attorney Yoon Yong-seok, told E-Daily on the 11th, “It is true that part of the money Lee Seung-gi paid to Piack Construction is supposed to be paid to the subcontractor, but it appears that normal payments are not being made due to Piack Construction’s internal circumstances.” Earlier that day, the JoongAng Ilbo reported that Mr. A, the representative of a subcontractor responsible for plastering work on the building, filed a lawsuit against Piark Construction last May after failing to receive 16 million won in construction payments. According to the report, Mr. A also sent a certified letter last month to Lee Seung-gi’s side demanding payment. Lee Seung-gi commissioned Piak Construction—operated by Cha Ga-won, CEO of One Hundred Label, his agency at the time—to build a structure with one basement level and five above-ground floors on a lot in Jangchung-dong, Seoul, that he purchased in 2024. Originally scheduled for completion last December, the building was only recently finished due to construction delays. When Lee Seung-gi refused to pay part of the balance, citing the construction delays, Piak Construction exercised a lien, demanding payment of the balance and additional construction costs. In response, Lee Seung-gi filed for a provisional disposition ordering the handover of the building and is currently awaiting the court’s decision. Attorney Yoon explained, “Lee Seung-gi, as the building owner, has also suffered various losses due to circumstances such as Piak Construction’s inflation of the contract price and its failure to properly pass on funds it received under the pretext of ‘paying subcontractors,’” adding, “It is not feasible for him to shoulder the burden of double payment even for these issues.” He revealed that a police investigation is currently underway after Piak Construction was filed a criminal complaint against for embezzlement in connection with these circumstances. Furthermore, Attorney Yoon revealed that he had been contacted by a representative of the subcontractor who had recently sent a certified letter. He claimed, “The subcontractor’s representative said something to the effect of, ‘After hearing the explanation, I understand Lee Seung-gi’s position—he has already paid more than the contract amount. Still, wouldn’t it be problematic if a famous celebrity were to be featured in news articles over something like this?’” He went on to emphasize, “From the subcontractor’s perspective, given Piark Construction’s difficult financial situation, they may feel they need to receive payment from the building owner. However, it is untrue to distort the facts by implying that Lee Seung-gi caused the damage by failing to pay, when in fact he has already paid more than the required amount.” Meanwhile, on the 7th, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency’s Metropolitan Investigation Division referred CEO Cha to the Seoul Central District Prosecutors’ Office on an arrest warrant, charging him with fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. CEO Cha is accused of signing a contract with Nomus Co., Ltd. to pursue a business venture utilizing the intellectual property (IP) of artists affiliated with One Hundred, receiving an advance payment of 24.2 billion won, and then failing to carry out the promised business. He is also accused of entering into a jeonse (lump-sum lease) contract for a house registered under an acquaintance’s name, receiving a security deposit in the range of 5 billion won, and failing to fulfill his contractual obligations. The police estimate the total amount of damages to be in the range of 30 billion won.
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