Lee Kyu Tae, CEO of Polaris Entertainment who was recently involved in a lawsuit with Clara, is currently under investigation for a possible case of fraud.
On March 11, Lee Kyu Tae was arrested by the Corruption Investigation Department. They also inspected 10 locations, including his home and the office of his main company, Ilgwang Group. The police reported that they have confiscated possible evidence proving his activities.
His group, Ilgwang, is an arms trading powerhouse that was established in 1985. CEO Lee worked for the police department prior to venturing into business.
According to the police, he has been arrested for unlawfully raising the prices on training weaponry being exported from Turkey for the Korean air force. He is also being investigated for lobbying to inflate these prices. The estimated sum of the money the Group has gotten out of the process is expected to be near $50 million USD.
Since the establishment of the main Ilgwang Group, he has branched out into the education market with Ilgwang private academies, as well as the entertainment sector with Polaris Entertainment. Ilgwang Group has also sponsored last year’s 51st Grand Bell Film Festival. with CEO Lee serving as the Chairman of the festival board.
Polaris Entertainment is currently home to artists like Kim Bum Soo, Ivy, Ladies’ Code, Yang Dong Geun (YDG), and Iron.