Shinwha's Shin Hye Sung sells Gangnam property at a loss

12 May 2026, 07:25 by Alec06 · allkpop

Shin Hye Sung has reportedly sold the boutique commercial building he owned in Nonhyeon-dong.

According to the real estate industry on May 12, the building in Seoul’s Gangnam District, which Shin Hye sung purchased for 4.9 billion KRW (approximately 3.5 million USD) in May 2022, was sold on April 29 for 5.55 billion KRW (approximately 4 million USD).

On paper, the transaction appears to have generated around 650 million KRW (approximately 465,000 USD) in capital gains over four years.

However, industry insiders believe the singer may have ultimately incurred losses after accounting for extensive remodeling and expansion work, acquisition taxes, and bank interest payments accumulated during ownership.

Cho Nam In, an executive at BuildingOn, explained that the building’s rental yield was only around the 2 percent range even under full occupancy conditions. With some vacancies still remaining, the actual rental income may have effectively operated at a loss, likely influencing the decision to sell.

Shin Hye Sung established the corporation 'Sagwa Meokneun Gongryong Co., Ltd' in 2022 to purchase the property. Originally structured as a multi-family residential building, the property later underwent large-scale renovations and expansion work, transforming it into a more modern commercial building.

Industry estimates suggest the renovation alone may have cost between 800 million and 900 million KRW (approximately 570,000 to 640,000 USD).

The building, located between Seoul Subway Line 9’s Eonju Station and Seoul Subway Line 7’s Hakdong Station, consists of one basement level and four above-ground floors. It sits roughly a five-minute walk from Eonju Station Exit 2.

The property currently carries a rental deposit of 120 million KRW (approximately 86,000 USD) and monthly rental income of around 13.05 million KRW (approximately 9,300 USD), translating to an annual rental yield of about 2.97 percent.

Meanwhile, in 2024, Shin Hye Sung avoided prison time for his second DUI offense and repeated refusal to take a breathalyzer test, but public backlash and growing criticism have cast serious doubt over his future return to the entertainment industry.

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