Kang Daniel Sued by Agency Majority Shareholder for Fraud "Forgery of Private Documents Worth 10 Billion Won"

"No option but to sue"... Complaint filed
Actual major shareholder holding 70% of agency shares
Led 10 billion won advance distribution contract by identity theft

Singer Kang Daniel has filed a lawsuit against the major shareholder of his agency on charges of fraud involving billions of won.

On the 20th, Kang Daniel submitted a complaint to the Seoul Metropolitan Police Agency against Mr. A, the major shareholder of Connect Entertainment, on charges including forgery of private documents involving 10 billion won, embezzlement and breach of trust related to aggravated punishment under the Specific Economic Crimes Act involving 2 billion won, violations of the Information and Communications Network Act, and fraud under the Criminal Act involving approximately 2 billion won. Mr. A is known to be the actual owner holding about 70% of the shares as the major shareholder of Connect.

Kang Daniel’s legal representative stated, "For the past five years, Kang Daniel, as the CEO and artist, has protected the company. To minimize damages to the artists, employees, and third-party contracting partners who trusted and followed him like family, he made strenuous efforts for over a year before proceeding with the criminal complaint. However, he has come to the conclusion that there is no other way to resolve this except to hold legal responsibility, and thus has proceeded with the criminal complaint with a heavy heart."

The reason Kang Daniel filed the lawsuit is reportedly related to an advance distribution contract worth billions of won. Through the complaint, Kang Daniel claims that "Mr. A exploited his position as the major shareholder to embezzle company funds and caused damages amounting to approximately 14 billion won by forging the company’s corporate seal in Kang Daniel’s name, the CEO, in December 2022."

Kang Daniel established Connect Entertainment in 2019 and has been active as both CEO and signed artist. Starting as a one-person agency, it now represents artists such as Chancellor, Yuju, and We Dem Boys. Kang Daniel’s exclusive contract with Connect is set to expire early next month.