IHQ chief denies using Jun Ji-hyun's bank account illegally

Jun Ji-hyun [10Asia]

Jung Hoon-tak, chief of entertainment firm IHQ, has denied he used actress Jun Ji-hyun's bank account to manipulate stock prices.

Through a press release issued by IHQ on Thursday, Jung said that the bank account of Jun's he has been accused of illegally using to pocket profits from a merger and acquisition, is "entirely Jun's possession" and that he had been managing it from a long time ago after being entrusted with the right to do so for the purpose of increasing her assets.

"You will see this from the fact that she recently closed the account and took the remaining stocks with her," Jung added, the stocks referring to what he allegedly purchased in the junior KOSDAQ-listed Stom E&F under her name in 2009 and made 200 million won off of by announcing several months later that he would acquire the company.

After investigation early this year on the parties involved, including Jun who testified that she had not even been aware of such an account existing under her name, the Financial Supervisory Service (FSC) charged Jung and Stom E&F's former CEO Kwon Seung-shik of gaining unfair profits from the transaction.

The case was assigned to the financial taxation department of the Seoul Central Prosecutors' Office yesterday.

Meanwhile, Jung also said he never bought his stake in Stom E&F on purpose but that he foreclosed on it after the company's former major shareholder failed to repay money he borrowed from TED Investment, a company Jung holds full ownership of.

He then went onto explain that he did not play a part in the decision-making process regarding the M&A of Stom E&F and only found out later on of the stake TED Investment would hold in it.

Jung also stated that he did trade stocks of Stom E&F under his name but that it is separate from the attempted takeover of the firm's management. He also said that overall, he suffered losses from his transactions.

He ended the statement by emphasizing that IHQ has no involvement in the ongoing case.

Jung, 43, is the largest shareholder of IHQ which is the mother company of several affiliates including Jun's former management agency SidusHQ.

Jun is no longer with SidusHQ -- she left them in August of last year, after 13 years with the agency, and set up her own firm under the name J & Co Entertainment.

※ Any copying, republication or redistribution of 10Asia's content is expressly prohibited without prior consent of 10Asia. Copyright infringement is subject to criminal and civil penalties.

Jessica Kim jesskim@