Sul Kyung-gu and KIM JAE JOONG File for Provisional Seizure... Trimage Sold for 5.9 Billion Won, but “No Distribution”?

[Financial News] Trimage in Seongsu-dong, Seoul, owned by Baek Chang-joo, CEO of C-JeS Studios, and subject to provisional-seizure applications by actor Sul Kyung-gu and singer KIM JAE JOONG, was sold at auction for approximately 5.9 billion won after failing to attract a bidder in two previous auctions. However, the registered maximum amounts of senior-ranking claims exceed the winning bid, making it highly likely that virtually no distribution will go to the two claimants, analysts said.
According to GG Auction, an auction and public-sale data company, the 12th-floor Trimage unit in Seongsu-dong, Seongdong-gu, Seoul, with an exclusive area of 152 square meters, was sold for 5.87379 billion won at the third auction held on the 7th. That was approximately 79% of its appraised value of 7.39 billion won.
The property failed to attract bidders at the first and second auctions held in early June and late July, respectively. At the third auction, the minimum bid was lowered to approximately 4.73 billion won, drawing eight competing bidders. The second-highest bid was 5.862 billion won, just 11.79 million won below the winning bid.
The winning bid was approximately 1.18 billion won lower than the latest transaction price for a unit of the same size. According to transaction-price statistics from the Ministry of Land, Infrastructure and Transport (MOLIT), a 152-square-meter Trimage unit was sold for 7.05 billion won in September last year.
The property is subject to provisional seizures filed by Sul Kyung-gu and KIM JAE JOONG, who were previously affiliated with C-JeS Studios, operated by Baek Chang-joo. Sul Kyung-gu applied for a provisional seizure in June last year for a claimed amount of 1.458 billion won, while KIM JAE JOONG applied in July of the same year for 602.26 million won. The measures were taken because they had not received payments from Baek, and the provisional seizures remain in place.
However, observers say it will be difficult for the two to receive any actual distribution.
The registered maximum amounts of senior-ranking claims—5.2 billion won in total held by Bank of Hope and 780 million won held by Piet C Technologies—exceed the winning bid. In addition, multiple provisional-seizure holders, including Vision Studio, Moon Hyung-woo, Sul Kyung-gu and KIM JAE JOONG, must participate in the distribution. 
Lee Joo-hyun, a senior researcher at GG Auction, explained, "Provisional-seizure holders divide whatever remains after distribution to senior-ranking creditors, regardless of priority among themselves. As a result, the actual distribution is highly likely to be either nonexistent or extremely small."
The final distribution amount, however, may vary depending on the actual balance of the senior-ranking claims. Financial institutions generally set the registered maximum claim amount above the loan principal. Therefore, if Baek has repaid part of the debt to Bank of Hope, there may be some funds left for junior-ranking rights holders.
C-JeS Studios was founded by Baek Chang-joo in 2009 under the name C-JeS Entertainment. The company gained recognition after signing Kim Jae Joong, Kim Junsu and Park Yoo-chun as the group JYJ. It later expanded its business by signing actors including Sul Kyung-gu, Song Il-kook and Ryu Jun-yeol. After its performance deteriorated, the company ended its actor-management business last year.
[email protected] Choi Ga-young Reporter