Kang Daniel has taken legal action against Person A, the main shareholder of his agency, KONNECT Entertainment. Daniel, who also holds the position of CEO at KONNECT, has accused Person A of several charges.
As per reports from the music industry on May 20th, Daniel lodged a complaint with the Seoul Metropolitan Police Agency against Person A. The charges include forgery of private documents, embezzlement, breach of trust, infringement of information and communication networks, and computer fraud, among others.
Person A is recognized as the real owner of KONNECT, owning about 70% of the shares as the main shareholder. Since its establishment in 2019, Daniel has been serving as the CEO of KONNECT.
The reason behind Daniel's legal action is reportedly due to issues with a prepayment distribution contract worth 10 billion won.
Daniel alleges that Person A forged his signature as the representative in December 2022 and stamped the corporate seal without his knowledge to enter into this prepayment distribution contract.
In the music world, a prepayment distribution contract is an agreement where a singer gets a large investment from a distributor and pays it back with the profits from music and album sales.
KONNECT received an investment of about 8.8 billion won in the first round through this contract. It's reported that Daniel, who released the album 'REALIEZ' last year and was active, has paid back about half and still owes about 4.5 billion won in investment money.
Furthermore, Daniel alleges that Person A withdrew a large sum of money from the company's account, misused the corporate card, and withdrew a large sum of money from Daniel's personal account without his consent. These allegations are included in the complaint.
Kang Daniel, a winner of Mnet's audition program 'Produce 101 Season 2', has been active as a singer, actor, and MC after his stint with the group 'Wanna One'.
Source[1]
