Singer Lim Chang Jung rebutted the allegations of contract breach regarding his performance guarantee on the 19th, claiming they are unfounded, but the concert planning company Jay-Z Star responded by stating they would take legal action.
Jay-Z Star stated, "We entered into a contract for a national tour concert with Lim Chang Jung in March 2020 and prepaid 1.48 billion won in guarantee until November 2021," and claimed, "The concert was postponed after Lim Chang Jung violated quarantine regulations and tested positive for COVID-19."
Furthermore, Jay-Z Star has incurred all losses including the cancellation penalty and a one-year performance ban, and Lim Chang Jung also expressed his gratitude in this regard.
It was further claimed, "Subsequently, a performance was held in 2022 under the title 'Multiverse,' but Lim Chang Jung expressed his desire to proceed with a new investor and conveyed his intention to invalidate the oral agreement."
Additionally, it was alleged that a singing contract for a 2023 remake album was signed with Lim Chang Jung, but due to stock manipulation controversies, Lim Chang Jung's activities became difficult, resulting in a loss settlement agreement being drafted. Accordingly, Jay-Z Star states that a total loss of 1.12904 billion won occurred.
In particular, it was pointed out that Lim Chang Jung did not fulfill repayment obligations despite having sufficient funds. They warned that they would proceed with legal procedures until fair compensation is received.
In response, Lim Chang Jung's side rebutted, "The unreturned guarantee mentioned by Company A includes not only the remaining concert guarantees that could not be held due to the incident, but also the comprehensive expenses relating to damages (cancellation fees, various promotional costs), interest, expected revenue, and the production costs of the remake album (deducted at the time of album release), therefore, the actual amount of debt is different from what is claimed."
They further stated, "Currently, a portion of the damage compensation amount has been repaid, and due to the loss of repayment capacity at the time, we have drafted an agreement at the request of Company A, actively cooperating with all legal requirements to transfer the company's owned building to Company A, and have been diligently fulfilling repayment obligations."
They added, "In relation to this, the agency and Lim Chang Jung have made every effort to assume maximum responsibility for the damages and have exchanged clear information on the damage amount and repayment plan several times until recently through the company."