On May 14, singer Park Hyo Shin was faced with a lawsuit from his previous agency regarding evasion of debt collectors by fraud.
Previously, in June 2012, Park Hyo Shin’s agency at the time sued him for violating his exclusive contract, for which he was ruled by the court to compensate for damages amounting to 1.5 billion won (approx. 1.5 million USD). That same year, in November, the singer applied for personal revitalization, but was denied. This past March, Park Hyo Shin repaid a total of 3.3 billion won (approx. 3.2 million USD), including the initial compensation amount and interest.
Park Hyo Shin’s current agency, Jellyfish Entertainment, revealed their position on the matter: “Park Hyo Shin’s previous agency has accused him of fraud and evasion of debt collectors regarding the repayment of the 1.5 billion won in damages ordered by the court.”
“At the time of the initial court order for compensation, Park Hyo Shin had already had about 800 million won seized by creditors from his previous agency. He then received an order of collection nearing an amount that would be impossible for him to pay, when he enlisted in the army. When he was released, the amount including interest was roughly 3 billion won. Park Hyo Shin applied for personal revitalization, but was denied.”
Jellyfish Entertainment continued, “Afterwards, with the help of our agency, Park Hyo Shin repaid the amount (3.3 billion won) in full, and there is no truth in the accusation that he tried to evade the debt collectors. Because there was no intent, we will be fully cooperating in the investigation, and we [Jellyfish] and Park Hyo Shin both are hoping for this to be cleared up.”