An Idol Group's Agency Charged with Suspicion of Fraud Over Unpaid Credit Worth 130 Million Won

An entertainment agency of a five-member idol group and other celebrities was charged with suspicion of fraud over unpaid tabs totaling around 130 million won (approx. 120,000 USD) at nine different business, including a hair salon, a photo studio, marketing team, dance team, etc., according to local news agency TV Chosun.

On May 14, the Seoul Suseo Police Station revealed that a hair salon located in Gangnam, along with eight other organizations, had charged the CEO of an entertainment agency, referred to as ‘A,’ with suspicion of fraud on April 24.

agency sued by salon

The hair salon stated in the petition submitted to the police that “‘A’ came to the hair salon in March of last year, asking it to take of the hair styling and makeup needs of their agency’s artists. “A” also specifically stated that the agency had a girl group up for debut soon, and once they debuted, the hair salon would be paid back through the money made by the group’s promotions.

The hair salon believed the agency’s promise and took care of the artists for about seven months. However, even after the agency’s girl group debuted, “A” did not pay back the money owed to the hair salon for its services.

The hair salon was the not only one in this situation, as it was discovered that eight other businesses had made similar agreements with the entertainment agency but had not been paid back yet. The total amount owed to these nine businesses was around 130 million won, and they decided to charge the agency for fraud on April 24.

In response to the charge, the agency reasserted that it would pay back the debt owed to the various business; it has just not been able to do so yet because of its current financial situation.

In the end, the hair salon decided to drop its charge against the agency, fearing that its business would be affected negatively by the rumors spread about the charges. What the other eight business have decided to do is unclear.

The police has stated that it plans to call in all sides for questioning to work out all the facts in this story.

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