Lee Seung-gi Sues Hook CEO... "Claims of Embezzling Not Only Music Royalties but Also Advertising Model Fees"

Complaint Filed Against CEO Kwon Jin-young and Former and Current Directors

Singer Lee Seung-gi (left) and CEO Kwon Jin-young. Photo by Hook Entertainment

[Asia Economy Reporter Lee Isul] Singer and actor Lee Seung-gi has claimed that Kwon Jin-young, CEO of Hook Entertainment, along with current and former board members, embezzled part of his advertising model fees.

On the 22nd, Lee Seung-gi's legal representative stated, "This morning, we filed a complaint with the Seoul Central District Prosecutors' Office against CEO Kwon and current and former directors."

Previously, Lee Seung-gi accused Hook Entertainment of concealing revenue from music streaming sales over 18 years since his debut and failing to settle the accounts. He filed charges against CEO Kwon and the financial director for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement in the course of duty) and (fraud).

The legal representative said, "Through recent tips, we learned that current and former directors of Hook Entertainment deceived Lee Seung-gi and embezzled part of his advertising model fees." They added, "Lee Seung-gi believed that about 10% of his advertising model fees had been paid to the advertising agency as so-called 'agency fees' for years, but in reality, current and former directors of Hook Entertainment appear to have withheld part of these agency fees from the advertising agency and divided them among themselves."

Lee Seung-gi's side stated, "When we raised objections, Hook Entertainment finally acknowledged the fact and on December 16 paid Lee Seung-gi approximately 630 million KRW in embezzled advertising fees and delayed interest separately from the music royalties." They also said, "The legal representative has filed charges against CEO Kwon and three current and former directors of Hook Entertainment for fraud and embezzlement in the course of duty based on these criminal facts."

Regarding Hook Entertainment's recent announcement that it paid Lee Seung-gi 4.1 billion KRW in unpaid music royalties, they firmly stated, "There was no agreement with Hook regarding the settlement of music royalties and other payments." They added, "Without prior notice, Hook unilaterally transferred approximately 4.81 billion KRW, including unpaid music royalties and embezzled advertising fees, and then filed a lawsuit seeking a declaration of non-existence of debt against Lee Seung-gi."

They continued, "The settlement amount unilaterally transferred significantly differs from the amount Lee Seung-gi has identified," and "While responding to Hook Entertainment's lawsuit for a declaration of non-existence of debt, we plan to file a counterclaim to claim unpaid music royalty settlements and damages due to illegal acts against Hook Entertainment and related parties."

Finally, they said, "Lee Seung-gi believes that no more victims like himself should occur," and "We have proceeded with criminal charges against CEO Kwon and current and former directors for their criminal acts."

Lee Seung-gi was with Hook Entertainment for 18 years since 2004, releasing 27 albums and 137 songs. However, he claims he never received any music royalty settlements and has urged disclosure of the details. Hook Entertainment denied this, stating, "This is not true." Later, Hook announced that in addition to the 1.3 billion KRW already paid, they paid an additional 4.1 billion KRW in unpaid music royalties and interest and said they would file a lawsuit seeking a declaration of non-existence of debt. In response, Lee Seung-gi expressed his intention to donate the 5 billion KRW unilaterally deposited and stated that he could not understand Hook's calculation method.

This content was produced with the assistance of AI translation services.