Junsu took out a loan of 15 billion won of which approximately 9 billion won was used to pay off a pre-existing loan, and approximately 5.9 billion won was directly deposited into Cheonji Construction’s (hereby Cheonji) account for equipment expenses from the bank as per banking regulations. Hence, the 5.9 billion won was always Junsu’s money which he has to return to the bank and whatever remained after the equipment expenses should have been returned by Cheonji to Kim Junsu.
In order to record the cash inflow in their accounting ledgers, Cheonji asked Toscana to write a promissory note for them which Toscana agreed to and a promissory note was written on August 4th, 2014. However, Toscana’s side became worried that the note would be used maliciously so a document with the promissory note (same content as the one previously written) AND a confirmation document that states “there is no repayment value associated with the promissory note and is only for accounting purposes” was written up, signed and sealed by both Toscana and Cheonji one day after on August 5th, 2014. Basically, the promissory note has been nullified by the confirmation document.
Note: Kim Junsu did not participate in any of these meetings between Toscana and Cheonji and he is not involved in the operation of Toscana Hotel. His brother and father are in charge of operation.
The problem comes when Toscana realizes they’ve been charged double the actual cost of construction, amounting to approximately 10 billion won so Toscana prepared to sue for compensation of damages. However, Cheonji got wind of Toscana’s plan to sue and smeared Kim Junsu through Jeju Domin Ilbo, which was the first media outlet that reported on the conflict and is under the same corporate umbrella as Cheonji.
Even though the 5.9 billion won is Kim Junsu’s money, Cheonji distorted the situation by saying that Kim Junsu borrowed 5.9 billion won from Cheonji. Why did Cheonji’s CEO sign the confirmation document that states there is no repayment value to the promissory note then?
This is 5.9 billion won we are talking about, approximately $5.9 million USD. If you lent somebody $5.9 million in a business transaction and that person came to you saying “can you sign this document which states that I don’t have to pay back that $5.9 million I borrowed from you?” Anybody would say heck no, let alone an experienced construction company CEO.
Aside from the 800 million won that was actually used for equipment, the remaining 5 billion won should have been returned to Junsu but Cheonji is claiming that that amount is what they lent to Kim Junsu. In essence, Cheonji is trying to extort Kim Junsu out of the money that Kim Junsu took out as a loan in his name. Cheonji was previously granted provisional seizure of Toscana property by Jeju District Court. However, that provisional seizure has now been removed and the case will go to court.
Kim Junsu took out a 15 billion won loan of which 5.9 billion won was directly deposited into Cheonji accounts for equipment. The remaining should’ve been returned but Cheonji is claiming this amount is a loan they gave to Kim Junsu and are trying to extort Kim Junsu out of money that was always rightfully his. When asked why they signed a document which states Toscana doesn’t owe a penny of the 5.9 billion to Cheonji, Cheonji CEO said “They asked me to so I did”. The provisional seizure of property previously applied on Toscana has been removed.
Video credit: KIM JUNSU 소풍
Summary by: ohmyjunsu of intoxication