Singer Imp Chang-jung is facing accusations of not returning a guarantee worth 1 billion won despite the cancellation of his concert, and the concert planning company has stated its position.
Previously, the concert planning company Jaygistar, which conducted Imp Chang-jung's nationwide tour concert, stated on the 19th, "Since signing the initial business agreement with Imp Chang-jung in 2020, we have cooperated based on trust, but we have suffered damages due to contract non-fulfillment issues." They added, "As the fact of the guarantee-related dispute was reported in the media, seeing him respond with 'groundless' made us consider legal measures, including legal action."
Jaygistar stated, "On the 14th, Imp Chang-jung's side stated in their position paper that they have been making their best efforts to take full responsibility for the damages. Our company actively aided in restoring Imp Chang-jung's image even after the 'stock price manipulation' controversy. We also supported responses to the acting academy's fraud allegations and the beauty salon's closure controversy free of charge." They continued, "However, Imp Chang-jung ceased communication with us starting at the end of 2024. Our company is refunding the contract amount after obtaining loans to maintain trust with investors and partners as the remaining performances were canceled due to the 'stock price manipulation' controversy. We have been shouldering the financial burden and trying to resolve the situation, but normal negotiations became difficult due to a breakdown in communication with Imp Chang-jung." They also expressed, "Moreover, we heard directly from MBOX that Imp Chang-jung held a concert and received a huge guarantee in the latter half of last year. Imp Chang-jung had entrusted us with the task of selling his copyright, yet he sold it to another company without any consultation, generating revenue in the tens of billions of won, while hiding this fact from us. Despite having sufficient funds to repay, Imp Chang-jung did not fulfill his obligations."
Jaygistar noted, "The revenue identified by our company after Imp Chang-jung's promise to repay includes approximately 2.1 billion won from copyright ownership, approximately 1.4 billion won from concert guarantees, totaling approximately 3.5 billion won. Although Imp Chang-jung has been in a position to repay, he has not done so, citing the provisional registration as a reason. Rather, he has concealed his circumstances while causing immense damage to our company and even distorted these facts in his recent statement." They emphasized, "To prevent further unilateral damage, we have initiated legal procedures for debt enforcement and will actively respond until we receive fair compensation."
On the 13th, a media outlet raised suspicions about Imp Chang-jung's concert 'fraud'. According to the report, Imp Chang-jung signed a contract for a nationwide tour concert for a guarantee amounting to over 1 billion won with Company A in 2022, but after the revelation of stock price manipulation, the concert was canceled, and he did not repay the guarantee or any damages.
However, after Imp Chang-jung announced a new album and a solo concert with MBOX, Company A raised concerns about his unilateral action to sign a concert contract with MBOX without resolving issues such as the contract. Nevertheless, Imp Chang-jung's side mentioned that they have repaid part of the amount and are in contact with Company A about repayment efforts.
Below is the full statement from the concert planning company.
Hello, this is Jaygistar.
We are delivering the statement regarding Imp Chang-jung.
Before mentioning this, it could be misunderstood that Imp Chang-jung has done his utmost to repay based solely on MBOX's statement. However, we clarify that the dispute with our company is beyond a simple guarantee issue.
Since signing the initial business agreement with Imp Chang-jung in 2020, we have cooperated based on trust, but we have suffered damages due to issues with contract non-fulfillment. Nevertheless, we have worked for a long time with Imp Chang-jung, bearing the damage and striving to avoid disputes like the current one.
Imp Chang-jung is well aware of these facts. However, as the fact of the guarantee-related dispute was reported in the media, seeing him respond with 'groundless' compelled us to consider legal measures, including legal action.
Regarding the nationwide tour concert from 2020 to 2021
In March 2020, our company signed a contract with Imp Chang-jung for a nationwide tour concert. Even in the difficult situation of proceeding with performances due to COVID-19, our company advanced a guarantee of 1.48 billion won in advance in six installments until November 2021. However, in November 2021, Imp Chang-jung was confirmed positive for COVID-19 while violating quarantine regulations.
Our company, which was in charge of not only performances but also overall tasks related to promotion, decided to inevitably postpone the nationwide tour concert in terms of risk management. While we could have claimed damages due to the artist's fault, we focused on resolving the situation and absorbed all losses such as cancellation penalties and a one-year venue ban. Imp Chang-jung expressed his gratitude for our decision. At the same time, he verbally agreed to provide his concert rights for life.
The postponed nationwide tour concert was held in 2022 under the title 'Multiverse' and successfully completed 16 out of 28 performances by starting with the concert in Jeonju on June 18 and concluding in Busan on December 31. In particular, the concert attracted about four times more audience compared to the nationwide tour "IMCHANGJUNG" held in 2018-2019, achieving remarkable success. Consequently, preparations began for the remaining 12 performances to be held in 2023, but Imp Chang-jung expressed a desire to break the verbal agreement, stating he wanted to conduct the concerts with new investors.
Regarding the remake album
In 2022, our company and Imp Chang-jung signed a project audio vocal contract for the nationwide tour concert 'Multiverse.' The main content was the release of a remake album, which was promoted due to its rarity as he had hardly covered songs by other singers. The release of the remake album also aimed to showcase Imp Chang-jung's new appearance to the audience during the 2023 tour.
On April 6, 2023, distribution contracts were finalized, and our company spent 115 million won on production costs, including vocal fees, arrangement agreements, arrangements, and sessions. We advanced Imp Chang-jung approximately 75 million won in two installments for vocal fees by April 20.
Content of the damage settlement related to the 'stock price manipulation' controversy
Imp Chang-jung became embroiled in the 'stock price manipulation' controversy that arose on April 25, 2023, making it difficult for him to conduct normal activities. Accordingly, our company and Imp Chang-jung prepared a settlement contract regarding damages connected to concerts and the remake album on May 13, 2023. The contents of the settlement according to the supreme court are as follows.
1. Concert
-Concert guarantee: 720,000,000
-Venue fee: 77,800,000
-Loss due to cancellation of local concerts: 80,000,000
2. Project album
-Vocal fee: 75,000,000
-Arrangement agreement: 7,500,000
-Song arrangement and production: 32,500,000
3. Promotion costs
-Media: 25,000,000 (Imp Chang-jung, Seo Ha-yan, and other affiliated artists)
4. Provisional registration fee
-Fee: 8,600,000
=Total amount: 1,026,400,000
=Including VAT: 1,129,040,000
As can be seen from the contents, our company set the damages only for the real costs such as guarantee, venue fees, and production costs for the album, considering Imp Chang-jung's circumstances at that time. The late interest and prospective revenue claimed by Imp Chang-jung on the 14th were not included in the amounts at that time.
Regarding the transfer of the company-owned building
Furthermore, Imp Chang-jung's side stated in their prior statement that the company-owned building was transferred to our company. At that time, Imp Chang-jung was under pressure not only from our company's damages but also from various businesses including F&B. Therefore, our company proceeded with the provisional registration after agreeing with Imp Chang-jung to secure the debt as collateral.
Imp Chang-jung stated that when the building was sold, it would be sufficient to repay the damage amount. Contrary to Imp Chang-jung's explanation, the building had a very high bank loan ratio, and even if the building were sold, there was no certain guarantee that our company would recover the damages as he claimed.
Nevertheless, our company approved this based on the trust relationship with Imp Chang-jung at that time. If our company had intended to recover damages through the building, it would have already initiated an auction or taken active measures such as renting the building from Imp Chang-jung, who is still using the building.
In fact, on November 16, 2023, Imp Chang-jung deposited approximately 200 million won as part of the settlement amount related to damages. Understanding Imp Chang-jung's situation where he lost a lot due to the 'stock price manipulation' controversy, our company decided to continue helping until the end despite suffering damage.
However, no further repayment occurred, and the situation of poor communication with Imp Chang-jung continued.
Regarding Imp Chang-jung's failure to fulfill repayment obligations
On the 14th, Imp Chang-jung's side stated in their position paper that they have been making their best efforts to take full responsibility for the damages.
Even after the 'stock price manipulation' controversy, our company actively helped to restore Imp Chang-jung's image. We also supported responses to the acting academy's fraud allegations and beauty salon closure controversy without charge.
However, Imp Chang-jung ceased communication with our company starting at the end of 2024. Our company is refunding the contract amount after obtaining loans to maintain trust with investors and partners as the remaining performances were canceled due to the 'stock price manipulation' controversy. We have been shouldering the financial burden while trying to resolve the situation, but normal negotiations have become difficult due to a breakdown in communication with Imp Chang-jung.
Additionally, we heard directly from MBOX that Imp Chang-jung held a concert and received a huge guarantee from MBOX in the latter half of last year. Furthermore, Imp Chang-jung had entrusted us with the task of selling his copyright, yet he sold it to another company without any consultation, generating revenue in the tens of billions of won while hiding this fact from us. Despite having sufficient funds to repay, Imp Chang-jung did not fulfill his obligations.
He also tried to discuss solutions with Representative Seo Ha-yan, but smooth communication did not occur. Another individual related to Imp Chang-jung lied by saying that 'the revenue from the copyright sale was used to repay the 2 billion won distribution loan' when asked about repayment plans. Moreover, he raised his voice, claiming, 'I have never received concert guarantees. I don't know about this.'
In addition, Imp Chang-jung expressed his intention to discuss matters directly with our company, but he did not show up at the agreed location, and since then, communication has been severed. We would like to question whether Imp Chang-jung has indeed made his utmost efforts to repay the debt.
It is true that MBOX and our company discussed repayment plans for several months until recently. During that process, our company first expressed opinions regarding legitimate late interest to Imp Chang-jung, who violated our trust. Subsequently, MBOX changed their words instead of discussing realistic repayment solutions and ultimately proposed a limited amount conditional upon the easing of the provisional registration. This was a condition that our company found difficult to accept, but nonetheless, we accepted it. However, the last statement we received from MBOX was that 'repayment is difficult.'
Conclusion and Company's Response Plan
After Imp Chang-jung's promise to repay, the revenue we identified includes approximately 2.1 billion won from copyright ownership and approximately 1.4 billion won from concert guarantees, totaling approximately 3.5 billion won. During this period, Imp Chang-jung has been in a position to repay but has not done so, citing the provisional registration as a reason. Instead, he concealed his circumstances while inflicting immense damage on our company and even distorted these facts in his recent statement.
To prevent further unilateral harm, our company has initiated legal procedures for debt enforcement and will actively respond until we receive fair compensation.
Thank you.
[Photo] OSEN DB
[OSEN = Reporter Ji Min-kyung]