Is Lim Hyung-joo Liable? The Controversial 8 Billion Won Construction Payment Dispute Explained

Lim Hyung-ju / Photo=DB

[Sports Today reporter Kim Tae-hyung] Popera singer Lim Hyung-ju’s camp has said it bears no legal responsibility for disputed unpaid construction fees. In response, the subcontractors for the Seoul Popera House building released a rebuttal statement.

On the 3rd, the subcontractors said in their statement that it is an established fact in court that (M. Blabird Co.), where Lim Hyung-ju serves as an internal director, failed to pay more than 800 million KRW (approximately $600,000) in construction fees to the prime contractor (Woongjin Industrial Development Co.). They accused Lim’s camp of misrepresenting the facts by claiming there were no unpaid amounts at (M. Blabird Co.) and by shifting responsibility to the prime contractor, even going so far as to falsely assert that “all payments have been made.”

The subcontractors said Lim and his sibling are the building’s de facto operators and responsible parties. They noted the property is owned by (M. Blabird Co.) as both trustee and beneficiary, and that the building was completed while construction fees remained unpaid. “Lim publicly described the building on broadcasts as ‘a house he built himself’ and currently resides there. Promoting corporate assets as personal property while denying legal responsibility for the debts incurred to build that property is contradictory,” they said.

The subcontractors also accused Lim’s side of having shown no intent to resolve the issue over the past three years. They said subcontractors exhausted every avenue to recover payment during that period, but (M. Blabird Co.) never presented a repayment plan. Even after Lim’s agency stated it intended to resolve the matter, there was no substantive dialogue. While subcontracting firms faced the threat of bankruptcy and serious financial hardship, Lim moved into the building and broadcast a lavish lifestyle without consulting the affected parties. The subcontractors criticized Lim’s camp for remaining silent for three years and then invoking “legal action” only after media scrutiny began, calling that posture intimidating toward small subcontracting firms.

Regarding (M. Blabird Co.)’s claim that it listed the building for sale at 15.2 billion KRW (approximately $11.4 million) to resolve the dispute, the subcontractors called that a “time-buying tactic with no realistic basis.” Given current real estate market conditions, they argued, that asking price is not realistically marketable. They said it appears designed to delay a sale and postpone debt repayment rather than to use sale proceeds to pay creditors. If the company were acting in good faith, the subcontractors said, it should provide an immediate repayment offer in line with the court ruling rather than an indefinite sales listing.

The subcontractors emphasized that any sale and payment proposal should not be framed as a favor by Lim or his family. “These unpaid subcontractor claims exist because the company failed to pay the construction fees it owed—this is not a matter of benevolence,” they said.

They added that, in the face of a debtor who shows no intention to repay despite a court ruling, the subcontractors’ only remaining public remedy was single-person protests. Characterizing that lawful protest as “intentional defamation” or “malicious reporting” misrepresents the core issue, they said. If Lim’s camp truly accepts the responsibilities that come with being public figures, the subcontractors urged them to present a prompt and concrete plan to repay the workers who earned those wages through their labor.

Earlier reports said (M. Blabird Co.), where Lim and his sibling serve as internal directors, failed to pay a total of 816,550,000 KRW (approximately $612,413) to subcontractors. In response, Lim’s camp issued a statement on the 5th of last month saying the construction contract between (M. Blabird Co.) and Woongjin Industrial Development Co. was signed on March 8, 2022—before Lim and his sibling were appointed company directors—and that Woongjin, as the prime contractor, should resolve any unpaid amounts with subcontractors after having received payment from (M. Blabird Co.). Lim’s camp maintained the siblings bear no legal responsibility even if subcontractors received only partial payments.

Lim’s statement continued that because these matters arose before the siblings became internal directors of (M. Blabird Co.), they are not responsible. Nevertheless, to avoid further dispute, Lim listed Seoul Popera House for sale last week through (M. Blabird Co.) at 15.2 billion KRW (approximately $11.4 million). Lim’s camp urged Woongjin Industrial Development to promptly pay any amounts it owes subcontractors. They added that if the building is sold before Woongjin fulfills its payments, Lim’s camp intends to use the sale proceeds to prepay the subcontractors’ claimed arrears and then pursue settlement with Woongjin afterwards.

Separately, Lim’s camp said it will take necessary legal action against subcontractors for what it called deliberate defamation, illegal protests in front of the siblings’ home, and malicious tips to the media.

[Sports Today reporter Kim Tae-hyung ent@stoo.com]
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