Singer Park Hyo-shin has been sued by the representatives and shareholders of his former agency.
According to Sporty News on the 25th, Park Hyo-shin was recently sued by agency officials for violations of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (fraud) and obstruction of business.
The conflict began in 2022 when Park Hyo-shin revealed that he had not received settlement for his contract fee and music revenue. On the 7th, the former representative A of his former agency Glove Entertainment (hereinafter Glove) and shareholders who own shares in Glove filed a complaint against Park Hyo-shin at the Yongsan Police Station in Seoul.
Glove allocated new shares to Park Hyo-shin, A, and other shareholders through two capital increases in May 2016 and August 2018.
The complainants stated, “Park Hyo-shin misled us into believing that he had ‘entrusted shares’ owned by the complainants to his close associate, the so-called ‘nominee president’ B, even though there was no actual trust agreement.”
They further claimed, “At the extraordinary shareholders' meeting in March 2022, he exercised the voting rights for the shares owned by the complainants and appointed three of his allies as directors, taking control of the company. At the extraordinary shareholders' meeting of Glove held in August 2023, he directly exercised the voting rights for the shares owned by the complainants and dismissed A from his director position.”
They believe that Park Hyo-shin's actions constitute 'triangular fraud (where the deceived party and the victim are different parties)' and have filed the complaint.
However, Park Hyo-shin's side denied the allegations in an interview with the media, stating, “It is true that Park Hyo-shin is involved in a civil lawsuit regarding the shares, but I understand that there is no fact of being sued for fraud.”
Meanwhile, this is the fifth time Park Hyo-shin has been sued. In 2006, his then-agency, Nissi Entertainment, claimed that Park Hyo-shin had unilaterally terminated his exclusive contract and filed a lawsuit demanding 1 billion won. Park Hyo-shin also counter-sued, and both parties eventually withdrew the lawsuits.
In 2008, he was embroiled in a contract-related lawsuit with his former agency, Instage. Instage claimed that Park Hyo-shin had breached his exclusive contract and filed a lawsuit for 3 billion won in damages. Park Hyo-shin refuted, saying, “It is not true,” but the court ruled in favor of Instage.
In May 2014, Park Hyo-shin's former agency sued him for evading compulsory execution. This refers to a crime established by concealing, destroying, falsely transferring property, or incurring false debts to evade compulsory execution, thereby harming creditors. Initially, Park Hyo-shin was acquitted, but the Supreme Court recognized his guilt in 2016.
Additionally, a businessman A claimed in 2019 that Park Hyo-shin had received over 400 million won worth of goods, including a car and a wristwatch, and then embezzled them, leading to a fraud complaint against him.
