Building owners for 20 years…

When the building rental company closed, the tenant tricked himself as if he were the owner of the building and signed an illegal sublease contract with a third party. The mall was initially shut down with billions of won worth of tax arrears, and the city had to put it on a short sale. The city restricted tenant’s profit activities through lawsuits and auctions, and collected 700 million won in tax arrears by the renter.

On December 24 last year, the streets in Gwangbok-dong, Jung-gu, Busan, are showing a busy appearance. [연합뉴스]

According to the Seoul Metropolitan Government on the 28th, the case began in 2006 when the construction lease company A, which was closed, was closed. Founded in 1985, A corporation purchased real estate in a shopping mall located in Busan in 1996 and then leased it to the’B Federation’, a civic organization. However, since then, A corporation ceased business activities, the business registration was abolished, and liquidation was terminated (closed) in 2006. At the time of closure, Corporation A was in arrears with a total of 3.5 billion won, including acquisition tax, which should have been paid while buying a building in downtown Seoul in 1999.

The 38 Tax Collection Division, the Seoul Finance Bureau, visited and investigated a shopping district in Busan, where Company A was conducting a rental business. However, the B Federation, which was the first tenant, was acting as a building owner by illegally signing a sub-lease contract with a large supermarket, C Mart, and re-leases the mall.

A sublease is a contract in which the lessee leases to a third party and is legal, but the consent of the lessor is required in accordance with Article 629 (1) of the Civil Code. The B federation took advantage of the fact that the company A had closed its business and collected a monthly rent of 2.75 million won in the name of consignment management for 20 years.

The lobby of Seoul City Hall on the 26th. [뉴스1]

The Seoul Metropolitan Government attempted to collect the 715 million won tax that was initially arrears by the A corporation by posting the mall on a short sale. However, there were also problems in this process. The mall was held as collateral. In particular, the B Federation, the tenant, was falsely set as the’priority mortgage holder’. This means that even if the mall, which is a collateral, was sold shortly, the B Federation had to receive the sale price first.

Accordingly, the Seoul Metropolitan Government filed a lawsuit and canceled the basic mortgage rights of Federation B. Ahn Seung-man, 38 tax collection team leader, explained, “If the secured bonds are more than 10 years old, the root mortgage rights become ineffective, but the B Federation’s bonds are over 20 years.” Since then, the city of Seoul collected 500 million won of arrears tax by selling the mall short in January of this year.

For Federation B, the use and income of shopping malls were limited. However, considering that the B Federation also paid a deposit to Corporation A as a tenant, only 200 million of the deposit of 340 million won was redeemed to Seoul.

According to Article 629 (1) of the Civil Act, the lessee, B Federation, cannot receive monthly rent, such as signing a full lease contract with C Mart, without the consent of A corporation. [국가법령정보센터 캡처]

Lee Byung-han, head of the Seoul Finance Bureau, said, “This case is a case of persistently pursuing a false root mortgage creditor who deliberately abused a company that has been delinquent in paying taxes, and collected arrears. I will realize this.”

The Seoul Metropolitan Government said, “However, we will support those who are willing to pay and can rehabilitate livelihoods so that they can engage in normal economic activities by canceling the registration of bad creditors and deferring disposition for nonpayment.

Reporter Heo Jeongwon [email protected]