[Full Text] Seonghun's Side "Cosmetics Company J Corporation Criminally Accused of Breach of Trust and Embezzlement"

Actor Sung Hoon / Photo by Yonhap News

[Asia Economy Intern Reporter Seulgi Kim] Actor Seonghun has filed a criminal complaint against a cosmetics company.

Seonghun's agency, Stallion Entertainment, stated on the 11th, "Last week, we filed a criminal complaint with the Seoul Gangdong Police Station against the CEO of cosmetics company J for breach of trust and embezzlement in the course of business."

Stallion Entertainment explained, "J intended to use Seonghun as a model when launching its hair product," adding, "However, feeling burdened by the modeling fee, J's CEO proposed to Seonghun's agency to establish a joint venture company C, launch hair products with Seonghun as the model for company C, and if the hair products were sold, give 30% of company C's shares as compensation for Seonghun's modeling fee."

The agency continued, "However, J was very passive in establishing company C and launched the hair products under J's name, not company C's," emphasizing, "In this process, Seonghun never signed a direct modeling contract with J, nor was he ever asked by J to fulfill any modeling contract obligations."

Furthermore, the agency stated, "J's CEO embezzled 300 million KRW of company C's capital, leased company C to his own building, and despite the space being vacant, received the deposit and monthly rent free of charge," adding, "Seonghun's agency has filed a complaint against J's CEO for embezzlement and breach of trust, and plans to clearly resolve the matter through legal judgment."

Earlier, on the 1st, a media outlet reported that Seonghun's agency had signed a joint business agreement with cosmetics company J in August 2018 to launch hair products and promised that Seonghun would participate in promotions as an exclusive model, but this was not properly fulfilled.

The following is the full statement from Seonghun's agency, Stallion Entertainment

Hello,

This is Stallion Entertainment, the agency of actor Seonghun.

We would like to clarify our position regarding the exclusive contract issue with cosmetics company J recently raised in connection with Seonghun.

1. Last week, Stallion Entertainment filed a criminal complaint with the Seoul Gangdong Police Station against the CEO of J for breach of trust and embezzlement in the course of business.

2. Recently, an article was published under the headline that Seonghun was in conflict over an exclusive modeling contract with J, which could cause misunderstanding that "Seonghun failed to fulfill the promotion contract as an exclusive model." The article included rumors that could be defamatory by highlighting a conflict between Seonghun and the agency. However, we reiterate that there is no problem whatsoever between Seonghun and the agency.

3. The objectively established facts related to this matter are as follows. J intended to use Seonghun as a model when launching its hair products. However, feeling burdened by the modeling fee, J's CEO Kim OO proposed to Seonghun's agency to establish a joint venture company C, launch hair products with Seonghun as the model for company C, and if the hair products were sold, give 30% of company C's shares as compensation for Seonghun's modeling fee.

4. However, J was very passive in establishing company C and launched the hair products under J's name, not company C's. Also, in this process, Seonghun never signed a direct modeling contract with J, nor was he ever asked by J to fulfill any modeling contract obligations, so the claim that Seonghun failed to fulfill a promotion contract is groundless.

5. Furthermore, J's CEO embezzled 300 million KRW of company C's capital, leased company C to his own building, and despite the space being vacant, received the deposit and monthly rent free of charge. Seonghun's agency has filed a complaint against J's CEO for embezzlement and breach of trust, and plans to clearly resolve the matter through legal judgment.