Damaging reports emerged recently claiming that a real estate scam just happened, leaving 3,000 victims with financial troubles. Unfortunately, one of the victims was reportedly a female idol who lost around $855,000.
Ten Asia published an article about a Korean wave star who fell victim to a $214 billion real estate scam. It did not take so long before the public found out it was Girls' Generation member Taeyeon.
Taeyeon Loses $850,000 To Real Estate Scam: What Happened?
According to the article, the $214 billion fraud case victimized a slew of comedians and artists to invest in real estate. Taeyeon, for her part, reportedly cashed out $855,000 in 2019 to purchase the land in Hanam, Gyeonggi Province.
The K-pop idol initially bought it from a large, planned real estate group, and both parties agreed to redevelop the area. However, the land she purchased is located in a mountainous area which cannot be revamped unless it is for military purposes.
The Forest Conservation Act prevents people from developing such areas that are treated as preservation mountains.
The real estate company reportedly bought it for $342,000 before selling it to Taeyeon for $855,000. A former employee of the company also revealed that Taeyeon's late father bought the land under the K-pop idol's name.
Taeyeon, SM Entertainment Respond To Real Estate Scam
Following the news, SM Entertainment and Taeyeon both released statements to address the issue.
Taeyeon's agency offered a brief message, saying, "It's difficult for the company to have a grasp on the issue because it is related to the artist's personal assets." Meanwhile, Taeyeon took her dismay on her Instagram Story, where she denied that she only joined the real estate investment for the money.
According to Taeyeon, she always dreamt of building a spot for her family. Together with her parents, they decided to purchase the land. Still, she asked everyone not to create baseless reports as she waits for an update regarding the financial damages.
The police have already confirmed that the company tried to avoid fraud suspicions by advertising their projects on TV. They claimed they attracted investors by having a famous KBS comedian as one of their salespeople.
The authorities are still investigating the matter and might issue charges of fraud after the inquiry.