Rock Singer A Accused of 500 Million Won Fraud After Switching to Trot Genre

Rock to Trot Singer A Sued
Sales Agency "Borrowed 500 Million Won and Didn't Repay"
A Explains "Received Investment... Business in Progress"

Singer A is under police investigation after being sued for fraud. Yonhap News

Singer A is under police investigation after being accused of borrowing several hundred million won under the pretense of building a pension and failing to repay it.

According to a report by The Fact on the 11th, sales agency M filed a complaint with the Guri Police Station in Gyeonggi Province in June against A and one other person on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud). M claimed that in October 2021, it lent 500 million won to real estate development company B, co-represented by A, but has yet to receive repayment.

M stated, "A and others promised that they would purchase approximately 38,000㎡ of land in Ongjin-gun, Incheon, to build a pension resort. They assured that the principal would be returned within 60 days of investment, and profits would be paid through a land-secured loan." They also said, "We confirmed circumstances indicating that A and others used the investment funds for personal debt repayment," adding, "The contract for the pension resort site was also terminated due to non-payment of the remaining balance," according to police statements. A attended meetings discussing the investment with M.

However, B explained, "We intended to repay debts and execute loans to purchase the land with the investment funds, but the land's collateral value was lower than expected, so the loan amount is not as high as anticipated." They added, "The purpose of the investment was clearly explained to M before receiving the money." A reportedly rebutted to The Fact, saying, "This is not fraud; we received corporate investment to jointly carry out the project as partners," and "The project is still ongoing." The police are investigating the exact facts, aware of the conflicting claims from both sides. A police official said, "We need to review the submitted materials to determine which side's story is closer to the truth."

Meanwhile, A is a former rock singer who has been focusing on the trot genre for several years.