South Korean Singer-Actor Kang Daniel Has Filed A Lawsuit Against KONNECT Investor For Alleged Fraud
Kang Daniel has filed a lawsuit against KONNECT investors for alleged fraud.
The South Korean singer-actor has filed a criminal complaint against an individual referred to as “A,” as per reports on Monday.
This individual reportedly holds 70% of KONNECT Entertainment shares.
Kang Daniel has initiated legal proceedings against a majority shareholder and has put forth many allegations, which include computer fraud, counterfeiting private documents, violations related to information and communications networks, embezzlement, and breach of trust.
Charges Centered Around $7.4M Contract
The dispute centers on a 10 billion KRW or approximately $7.4 million advance distribution contract signed in December 2022.
Daniel’s representative in an official statement charged Mr. A with misusing his identity and the company’s seal to sign the contract without the artist’s knowledge.
The South Korean singer/actor said that he was unaware of this deal, which has resulted in him incurring significant losses.
Mr. A Withdrew $1.5M from the Company’s Account; and $1.3M from Kang Daniel’s Personal Account
Mr. Daniel’s representative said,
“Mr. A had withdrawn over 2 billion KRW (approximately $1.5 million) from the company’s account through overseas remittances and business income processing methods without following proper procedures such as CEO approval, board resolutions, or shareholder meeting resolutions.”
An investigation into the company’s financial transaction records revealed that Mr. A had also withdrawn over 1.7 billion KRW (approximately $1.3 million) from Daniel’s personal bank account without his knowledge.
After the filing of the legal complaint, Kang Daniel’s legal representative released the following statement:
“Hello. This is Wooree Law Firm (attorney in charge: Park Sung Woo), the legal representative of Kang Daniel (hereinafter referred to as the client). On behalf of the client, we would like to convey his position regarding the recent criminal complaint that was recently disclosed through the media.
The client filed a criminal complaint with the Seoul Metropolitan Police Agency on May 20 against the major shareholder of KONNECT Entertainment for charges including counterfeit of private document, embezzlement, breach of trust, violation of information and communications network, and fraud by use of computer, etc.”
KONNECT Entertainment was created by Daniel on June 5, 2019, and he has served as its CEO to date. The company manages Daniel’s activities. It also manages the affairs of two other soloists, Chancellor and Yuju, as well as the dance crew We Dem Boyz (WDBZ).
KONNECT faced criticism over its mismanagement of artist Yuju. Daniel’s contract with KONNECT was due to end early last month.
Kang Daniel is a singer and actor from South Korea who gained immense popularity after participating in Mnet’s music survival show Produce 101 in 2017. Later, he became a part of the 11-member K-pop group ‘Wanna One’ formed from the show’s participants. After the group disbanded in 2019, Daniel started his solo career. He made his acting debut with the Disney+ original series Rookie Cops, co-starring actor Chae.
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