Known Korean Singer Reportedly Sued For Fraud…. For The 5th Time, Former Agency’s CEO And Shareholders File Complaint With The Police
Singer Park Hyo Shin has become embroiled in a legal dispute with his former agency, marking his 5th legal dispute yet.
Recently, Korean media outlet SPOTV News reported that Park Hyo Shin had recently been sued by officials from his former agency on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and obstruction of business.
According to the report, the former CEO A of Park Hyo Shin’s previous agency, Glove Entertainment, and the company’s shareholders filed a complaint against Park Hyo Shin at the Yongsan Police Station in Seoul on the 7th of April.
Glove Entertainment stated that in May 2016 and August 2018, through two paid-in capital increases, new shares were allocated to Park Hyo Shin, CEO A, and other shareholders.
Regarding this, the complainants claimed, “Park Hyo Shin deceived B, a close associate who was unfamiliar with the company’s circumstances, by falsely claiming that there was a trust agreement for the shares owned by the complainants, causing B to mistakenly believe that Park Hyo Shin was the true owner of the shares.”
They further alleged, “At an extraordinary shareholders’ meeting in March 2022, Park Hyo Shin exercised voting rights over the complainants’ shares and appointed three of his own people as directors, seizing control of the company. In August 2023, at another extraordinary shareholders’ meeting, he again used the voting rights over the complainants’ shares to dismiss A from his position as director.”
They believe that Park Hyo Shin’s actions fall under “triangular fraud” (a type of fraud where the deceived party and the harmed party are different).
On the other hand, Park Hyo Shin’s side denied the allegations through the outlet, stating, “It is true that the former CEO filed a civil lawsuit against Park Hyo Shin regarding the shares, but we are not aware of any criminal fraud charges being filed against him.”
Meanwhile, this is not the first time Park Hyo Shin has been involved in a legal dispute — it is already his fifth.
Previously, Park Hyo Shin signed an exclusive contract with Nissi Entertainment Group in 2005, but in 2006, the agency sued Park Hyo Shin and his manager for 1 billion won, claiming he failed to fulfill his contractual obligations. Eventually, Park Hyo Shin returned the full contract fee after a settlement, and both sides withdrew their lawsuits.
Starting with the dispute against Nissi Entertainment, Park Hyo Shin also faced a damages lawsuit with InterStage in 2008, and again in 2014, InterStage filed another lawsuit accusing him of evading compulsory execution. In 2019, a businessman sued Park Hyo Shin for fraud, alleging that he took luxury items including a car and wristwatch worth over 400 million won.
Source: (A)
