SK Hynix Vice Chairman Park Jung-ho has purchased a hotel in Manhattan’s Chelsea neighborhood for $5 million from SK Square Americas CEO Shin So-young, who had bought it in October 2021 for $7.3 million. The sale to Park exceeded the purchase price by $2.3 million.
Documents obtained by ChosunBiz indicate that Park acquired a four-story hotel building in Chelsea on Nov. 22 last year from Shin for $5 million, paid in cash. Over the past five years, Park has earned about 29.1 billion won in salaries from companies including SK Telecom, SK Hynix, and SK Square.
Administrative documents filed with New York City include the agency’s signature, while Park’s signature appears on documents such as the real estate contract (RP-5217nyc).
The hotel, constructed in 1920, features four floors. The first floor operates as retail space, while the second through fourth floors serve as hotel accommodations. Situated in the heart of Manhattan, it is approximately 700 meters from the Empire State Building.
According to a local real estate information site, Shin purchased the hotel for $7.3 million on Oct. 27, 2021. At the time, Shin reportedly secured a $6.81 million loan from Newbank, a Korean capital bank in New York, accounting for 93% of the total contract amount.
In March 2022, the United States raised its benchmark interest rate from 0-0.25% to 0.25-0.5% and increased it 11 times until it reached 5.25-5.5% by July of last year. With the rise in interest rates, U.S. real estate prices declined, suggesting that Shin may have faced difficulty managing the increased financial pressure from higher interest rates.
Shin has been involved in joint investments and mergers and acquisitions with Park and SK in the U.S., and serves as a board member of NANOX, an Israeli medical imaging technology company in which Park led the investment.
SK Hynix stated that since it’s a transaction between individuals and was invested with personal funds, there are no legal issues involved.
