Kang Daniel Files Lawsuit Against Major Shareholder Of His Agency KONNECT Entertainment

Kang Daniel has taken legal action against a major shareholder of his agency.

KONNECT Entertainment is an agency that Kang Daniel established in 2019. On May 20, it was reported that Kang Daniel  filed a criminal complaint against “A,” who holds approximately 70 percent of the shares of KONNECT Entertainment, on charges including counterfeit of private document, embezzlement, breach of trust, violation of information and communications network, and fraud by use of computer.

Following the report, Kang Daniel’s legal representative released the following statement:

Hello. This is Wooree Law Firm (attorney in charge: Park Sung Woo), the legal representative of Kang Daniel (hereinafter referred to as the client). On behalf of the client, we would like to convey his position regarding the recent criminal complaint that was recently disclosed through the media.

The client filed a criminal complaint with the Seoul Metropolitan Police Agency on May 20 against the major shareholder of KONNECT Entertainment for charges including counterfeit of private document, embezzlement, breach of trust, violation of information and communications network, and fraud by use of computer, etc.

As the CEO and artist who has protected the company for the past five years, the client has made every effort for over a year to minimize the damage to the affiliated artists and employees who have trusted and followed him like family as well as third party contractors. However, he has come to the heavy-hearted conclusion that there is no other solution but to hold the responsible parties legally accountable, leading to the filing of this criminal complaint.

1. Regarding the charges for counterfeit and uttering of private document 

In January 2023, the client discovered that a prepayment distribution contract worth over 10 billion won (approximately $7.4 million) was signed in December 2022 using the CEO’s name without his knowledge by affixing the corporate seal. The contract was signed without the CEO’s approval nor the artist’s consent. Despite multiple inquiries about the contract’s procedures and key details, no answers were provided, and the client had to personally obtain bank transaction records to confirm the facts.

2. Regarding the charges of embezzlement

It was confirmed that over 2 billion won (approximately $1.5 million) was withdrawn from the company’s account through overseas remittances and business income processing methods without any proper procedures such as CEO approval, board resolutions, or shareholder meeting resolutions.

3. Regarding the charges of breach of trust

The client also discovered that an undesignated corporate card was used to spend over tens of millions of won, which was falsely recorded in the accounting books as the client’s prop expenses.

4. Regarding the charges for violation of information and communications network and fraud by use of computer

While verifying the company’s financial transaction records, the client found that over 1.7 billion won (approximately $1.3 million) was withdrawn from his own bank account without his knowledge.

We are grateful and sorry for the concern from those who read the related articles about the damage and distress received by Kang Daniel. This is especially the case because we know about the worries that arise when a lawsuit is underway due to his past experience. However, the client has mustered great courage in the hope that such unjust incidents will no longer occur in our popular culture and arts industry and that this case will be the last.

We will convey our position again once the investigative authorities have thoroughly examined the case and the facts are clearly revealed. Thank you.

Source (1)

Top Photo Credit: KONNECT Entertainment

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