Rain faces real estate fraud allegations; agency issues official statement

The South Korean entertainment industry has recently been shaken by allegations of a real estate scam involving the internationally renowned South Korean singer and actor, Rain. He is currently facing accusations of being involved in an 8.5 billion won real estate fraud. The singer’s agency RAIN Company released an official statement regarding the controversy.

Rain faces real estate fraud allegations

Rain is currently facing allegations of defrauding 8.5 billion KRW in real estate transaction fees. These claims were reported by Money Today on September 25 and are being brought forward by an individual identified as 'A.'

'A's legal representatives, Kim Du Jin and Jang Jung Hoon from the law firm Seobuk, officially filed a complaint against Rain at the Yongsan Police Station in Seoul. The complaint was submitted last month.

According to the statements provided, the alleged incident occurred in May of the previous year. At that time, Rain expressed his interest in purchasing a building and plot of land owned by 'A' in Gyeonggi Hwaseong Namyang Newtown. 'A' agreed to sell the property to Rain for a price of 25 billion KRW, approximately 18.7 million USD. In order to facilitate this transaction, Rain proposed that 'A' purchase his house in Itaewon, Seoul, to raise the necessary funds. 'A' accepted this proposal without any objections. Consequently, 'A' acquired Rain's house for 8.5 billion KRW.

In the same year, just two months after the contract was signed, Rain, acting as the representative of the corporation Mega Big Entertainment, purchased 'A's building for 23.5 billion KRW, which amounts to approximately 17.5 million USD.

However, this transaction was not without its disputes. 'A' claimed that he was unable to conduct proper due diligence and inspect Rain's property. The real estate agent, Jung, cited Rain's celebrity status and the desire to keep the transaction private due to Rain's wife, Kim Tae Hee, being at home as reasons for the lack of access. It was only after 'A' complained that he was provided with photos of the property, which were sent by a staff member named Park from Rain's company.

Complications arose when 'A' discovered discrepancies between the property he acquired and the photographs he had received. In contrast to the images, the house lacked an outdoor swimming pool, and its exterior differed significantly. Inside, the condition of the property appeared dilapidated, with torn wallpaper and markings on the walls. These disparities prompted 'A' to seek clarification from Mr. Jung, the real estate agent involved in the transaction.

Legal representatives of 'A' passionately presented their side of the dispute, asserting that Rain had cited privacy concerns, refused to reveal the true state of the house, and misrepresented its value. Consequently, 'A' was deceived into purchasing the property, resulting in a fraudulent loss of 8.5 billion KRW in the real estate transaction. They also lamented the ongoing financial impact that 'A' continues to suffer as a result of this property purchase.

Rain's company responds

In response to the accusation, Rain's company informed Money Today that they had not officially received the complaint. They clarified that they were only notified by the police station about the complaint recently. Consequently, they have requested that the case be transferred to the Gangnam Police Station, which falls within their jurisdiction.

Rain's team strongly denied the accusations that the house was never shown to 'A.' They asserted that Rain had every intention of showing the house and even went as far as showing it twice to 'A's wife, with the involvement of Rain's father as well. They mentioned that there is correspondence to support this claim, and the staff members from the real estate agency can verify these interactions.

Furthermore, they refuted the allegations of misrepresenting the property through photographs. They explained that the accusation regarding a false photo of an outdoor swimming pool is untrue and clarified that the photo in question was actually Rain's profile picture on KakaoTalk. They encouraged people to refer to satellite images and building records, which clearly indicate the absence of a pool. They emphasized that fabricating such falsehoods when dealing with a property worth 8.5 billion KRW is illogical.

RAIN Company asserted that they possess substantial evidence to counter the allegations. They expressed that the claims made by the buyer are far removed from the actual facts of the case and defy common sense. The company vowed to pursue appropriate countermeasures against what they see as an attempt to exploit Rain's status as a public figure.

However, 'A's representatives swiftly responded to Rain's defense through YouTuber Gu Je Yeok. They strongly contested Rain's claim of showing the house, calling it entirely false and expressing their frustration with what they perceive as baseless lies. They also stated their intent to present further evidence to disprove Rain's statements they consider deceptive.

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