A controversy has erupted at Koreatown Plaza, located near Western Avenue in Los Angeles’ Koreatown, as the new property owner demands business owners repay rent that was previously waived by the former owner.
According to several business owners in the plaza, the new landlord has requested full or partial repayment of rent that was forgiven in 2020 due to the COVID-19 pandemic when renewing or terminating lease agreements.
The current owner of Koreatown Plaza is Young Kim, who took over the property from former owner Yang Joong-nam in September 2022.
A business owner who recently ended their lease expressed frustration:
“The previous owner agreed to waive the rent, yet now I am being asked to pay back the forgiven rent when closing my business. On top of that, they are withholding my security deposit. Isn’t it unreasonable to charge rent that was already written off?”
Most businesses in the mall operate under three-to-five-year lease agreements, with many opting for renewals. If this demand for back rent becomes a precedent, other businesses may face similar financial burdens in the future.
A business owner who has been operating at Koreatown Plaza for over ten years shared their concern:
“We know this is unfair, but most of us comply out of fear that our lease agreements might not be renewed. However, some business owners are seeking legal advice to explore possible solutions.”
The new property owner, Young Kim, defended the rent demands, stating that each business had different lease conditions and circumstances regarding unpaid rent during and after the pandemic.
“We are taking different approaches depending on the outstanding rent and credits of each business before and after the pandemic,” Kim stated. “Some businesses refused to pay rent even after reductions, or ignored increased rental rates altogether, which led to our decision. This is not a blanket policy applied to all businesses, but a case-by-case matter. The regulations set by the new landlord now take priority.”
Albert Chang, a corporate law attorney, weighed in on the issue:
“If the rent forgiveness was specified in the property sale agreement, the new owner has no legal right to demand repayment of previously waived rent. Also, the statute of limitations for rent claims is four years.”
Former owner Yang Joong-nam confirmed that the rent forgiveness was officially documented in the escrow process during the property sale.
According to Yang’s representatives, during 2020 and 2021, at the height of the pandemic, several months of rent were fully or partially waived (30-50%) for different businesses.
A representative from Yang’s team further stated:
“Formal documentation regarding the waived rent was provided to the tenants at the time. Many of these businesses have been here for over 20 years. Treating this property like a swap meet or a small mall is deeply concerning.”
BY BRIAN CHOI [ichoi@koreadaily.com]
