Kang Daniel files lawsuit against KONNECT investor for alleged fraud
What's the story
Kang Daniel, the founder of KONNECT Entertainment, has initiated legal proceedings against a significant shareholder of the agency.
On Monday, reports revealed that the South Korean singer-actor filed a criminal complaint against an individual referred to as "A," who holds around 70% of KONNECT Entertainment shares.
The charges include allegations of "counterfeiting private documents, embezzlement, breach of trust, violations related to information and communications networks, and computer fraud."
Fraud accusation
Allegations surround $7.4M contract
The dispute centers around a 10B KRW (approximately $7.4M) advance distributing contract signed in December 2022.
In an official statement issued by Daniel's representatives, the artist alleges that Mr. A used his identity and the company seal to sign this contract without his knowledge or consent.
The singer-actor claims he was completely unaware of this deal, which has resulted in subsequent losses for him.
Embezzlement
$1.5M withdrawn from company's account; $1.3M from Daniel's personal account
In the statement, it was alleged that Mr. A had "withdrawn over 2B KRW (approximately $1.5M) from the company's account through overseas remittances and business income processing methods without following proper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."
Additionally, during the verification of the company's financial transaction records, it was discovered that over 1.7B KRW (approximately $1.3M) was withdrawn from Daniel's personal bank account without his knowledge.
Career overview
Daniel's tenure at KONNECT Entertainment
Daniel founded KONNECT Entertainment on June 5, 2019, and has served as its CEO since then.
The company manages his activities as well as those of two other soloists, Chancellor and Yuju. It is also home to the dance crew We Dem Boyz (WDBZ).
Last month, KONNECT faced criticism over the reported "mismanagement" of artist Yuju.
Meanwhile, Daniel's exclusive contract with KONNECT is set to expire early next month.
Rise to fame
Daniel's journey to stardom: A brief look
Daniel gained popularity as a singer and actor after participating in Mnet's music survival show Produce 101 in 2017.
He subsequently joined the 11-member K-pop group Wanna One formed from the show's participants.
After the group disbanded in 2019, Daniel embarked on a solo career.
In 2022, he made his acting debut with the Disney+ original series Rookie Cops, co-starring actor Chae Soo-bin.