Gangnam style rental issues

By Elisa Krovblit Keay
October 27, 2015

Just because you're a famous landlord, doesn't mean that things always go smoothly. Just ask Korean rapper PSY. The Gangnam Style phenom is having rental issues with tenants in a building that he purchased in Seoul in 2012 for about $6.8 million. The rental issues stem from a court ruling that was in place at the time of the purchase.

The artists currently occupying PSY's building claim that the ruling – which had ordered them to vacate in 2013 – isn't enforceable. Initially they'd come to an agreement to vacate in November, but have now decided to continue their occupancy. After swapping about 10 lawsuits they are insisting that the laws have changed and the ruling, obtained by the previous owner, was for specific work to be done to the building, which is much different in scope than what PSY has planned.

But while galloping Gangnam Style PSY may be a YouTube sensation, the business side of PSY has a serious interest in the building and feels that his uncooperative tenants are trying to capitalize on his brand.

As court cases, including defamation of character, wage on, it raises the rental issues that Seoul – and most major city centres face. As areas undergo gentrification and become trendy, market value for rent starts to rise. Where rent control exists, this leaves landlords in the position of having desirable units which could bring in much higher rent. However, if the units are occupied by tenants who were there before gentrification, the existing rent is often much lower. By renovating a building, tenants must leave, enabling landlords to re-rent units at the higher market rent values. As many in cities like Seoul watch these rental issues unfold, it causes longterm tenants to be displaced and takes the local flavour out of the area by cutting out the locals. PSY had intended to turn the six-storey building into a coffee shop but has revised his plan to include reconstruction.

//www.flickr.com/photos/evarinaldiphotography/8541751128/sizes/o/in/photostream/" target="_blank" rel="nofollow">Photo by Eva Rinaldi Celebrity and Live Music Photographer" />

About Elisa Krovblit Keay

Elisa Krovblit Keay is a NextHome contributor.

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