Singer Park Hyo-shin has been sued for fraud and obstruction of business by the former representative of his agency and shareholders.
According to a report by a media outlet on the 25th, Park Hyo-shin was recently sued for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and obstruction of business by the former representative A of his agency, Globe Entertainment (hereafter Globe), and shareholders holding Globe stock. It has been confirmed that they submitted a complaint against Park Hyo-shin to the Yongsan Police Station in Seoul on the 7th.
This lawsuit stems from a management dispute that arose after Globe allocated new shares to Park Hyo-shin and A, among other shareholders, through rights offerings in May 2016 and August 2018.
The plaintiffs claim that "although there was no actual trust agreement for the name, Park Hyo-shin misled them into believing that the shares owned by the plaintiffs were in trust under his name, thus causing them to be under the impression that the real owner of the shares was him."
In addition, the plaintiffs stated, "At the emergency shareholders' meeting in March 2022, Park Hyo-shin exercised the voting rights related to the shares owned by the plaintiffs himself, appointing three people in his favor as directors, and took control of the management. In the emergency shareholders' meeting in August 2023, he dismissed A from the director position through the voting rights concerning the shares owned by the plaintiffs." They consider Park Hyo-shin's actions to be 'triangle fraud (where the perpetrator and victim of the misleading act are different forms of fraud).'
On the other hand, Park Hyo-shin's side denied through the media that "it is true that he was involved in a civil lawsuit concerning the shares, but there is no fact of being sued for fraud."
In fact, Park Hyo-shin's "legal battles" are not new. Previously, Park Hyo-shin signed an exclusive contract with Nissien Entertainment Group in 2005, but the following year, the agency filed a lawsuit for 1 billion won in damages against Park Hyo-shin and his manager, claiming that he had not fulfilled his contractual obligations. Ultimately, Park Hyo-shin returned the full amount of the contract fee after reaching a settlement, and both parties withdrew the lawsuit.
Two years later, Park Hyo-shin had another dispute with Interstage. Interstage filed a lawsuit for 3 billion won in damages against Park Hyo-shin, but Park Hyo-shin's side countered that he suffered from inadequate support from Interstage and that they forged his signature to secretly enter into a large distribution contract, committing fraud against regional concert promoters. However, the court ordered Park Hyo-shin to pay 1.5 billion won in damages, after which Park Hyo-shin entered into an exclusive contract with Jellyfish Entertainment.
Wrapped in Jellyfish's care, Park Hyo-shin settled all debts with Interstage with the agency's help. However, in 2014, Interstage filed a lawsuit against Park Hyo-shin for evading enforcement, and in 2015, he was sentenced to a fine of 2 million won.
After the expiration of his exclusive contract with Jellyfish in 2016, Park Hyo-shin moved to the newly established agency Globe, but he later warned of a legal battle with Globe, stating that the calculation amounts which had been delayed for some time and were compounded with concert settlement amounts could not be received, and that he was in a situation where he could not receive any earnings from music source revenues and exclusive contract fees for the last three years.
[Photo] OSEN DB
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