▲ Kang Daniel, K-pop singer and CEO of KONNECT Entertainment, appears on this photo provided by the agency on May 24, 2024. (PHOTO NOT FOR SALE) (Yonhap)

 

SEOUL, May 20 (Yonhap) -- Kang Daniel, the CEO and artist of his own agency KONNECT Entertainment, has filed a lawsuit against the company's major shareholder over alleged forgery, embezzlement, breach of trust, information network intrusion, and computer fraud.

 

With his exclusive contract with KONNECT set to expire early next month, Kang Daniel is expected to part ways with the agency once the contract period ends.

 

According to industry sources on the 20th, Kang Daniel has taken legal action against the shareholder, identified as A, who holds approximately 70% of KONNECT's shares and is known as the company's de facto owner. The agency represents Kang Daniel, Chancellor, and Yuju, among others. Kang Daniel established the company in 2019 and has served as its CEO.

 

The dispute centers around a significant advance distribution contract, reportedly worth over 10 billion won. Kang Daniel alleges that A used his name without permission and forged the company seal to sign this advance distribution contract in December 2022. He claims he only discovered the contract in January of the following year, a month after it was signed.

 

In the music industry, an advance distribution contract involves receiving a large investment from a distributor, which the artist repays through future music sales. KONNECT reportedly received an initial investment of about 8.8 billion won under this contract. Following the release and promotion of his album "REALIZE" last year, Kang Daniel has repaid approximately half of this amount, leaving about 4.5 billion won still owed.

 

Kang Daniel asserts that despite repeatedly asking A for details about the contract's procedures and terms, he did not receive satisfactory answers. It was only after he obtained bank transaction records that he became aware of the contract's existence.

 

Additionally, Kang Daniel accuses A of withdrawing large sums from the company's accounts, using corporate credit cards inappropriately, and withdrawing substantial amounts from Kang Daniel's personal account without his consent. These allegations have been included in the lawsuit.

 

Kang Daniel rose to fame as the winner of Mnet's audition program "Produce 101 Season 2," debuting with the group Wanna One, which gained immense popularity. Since 2019, he has pursued a solo career and has been active as a singer, actor, and MC.

 

▲ This file photo shows Kang Daniel. (Yonhap)

 

 

 

 

 

[ⓒ K-VIBE. 무단전재-재배포 금지]