Will Kang Daniel's KONNECT shut down soon amid legal dispute
KONNECT Entertainment, the agency founded by K-pop idol Kang Daniel in 2019, is currently embroiled in a significant upheaval. The company has lost all its artists due to an ongoing legal battle and internal conflict. The dispute was triggered when Daniel filed a criminal complaint against the agency's majority shareholder, known as Mr. A. As of Tuesday, every artist previously signed to KONNECT Entertainment had left the agency.
Is KONNECT nearing shutdown?
Numerous insiders from the music industry reported that KONNECT is nearing shutdown. All agency staff have either been dismissed or resigned, while affiliated artists are also departing to pursue independent careers. Amid legal conflicts, the remaining shareholders have opted to sever ties with all affiliated artists. With Daniel's contract set to expire next month, he also intends to depart the company gracefully rather than continuing solo activities under a one-man agency. Consequently, the agency seems poised for imminent closure.
These artists severed ties with KONNECT
Among the artists who have left KONNECT Entertainment is former GFriend member Yuju, who terminated her contract in mid April. Prior to her departure, the agency faced backlash from fans for allegedly failing to adequately promote her. Street dance group WE DEM BOYZ also cut ties with the company, confirming their decision not to renew their exclusive contract in November 2023. Additionally, singer-songwriter and record producer Chancellor has parted ways with KONNECT Entertainment.
Legal battle intensified within KONNECT Entertainment
The internal conflict within KONNECT escalated when Daniel lodged a complaint against Mr. A with the Seoul Metropolitan Police Agency via Woori Law Firm. The complaint includes accusations of forgery of private documents, embezzlement, breach of trust, infringement on information and communication networks, and computer fraud. Adding to the complexity is a report that states a 10B KRW (approximately $7.4M) advance distribution contract was signed in December 2022 without Daniel's consent.
Financial misconduct, unauthorized withdrawals rock Daniel's company
In an official statement released by Daniel's representatives, it was claimed 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 A had "withdrawn over 2B KRW (approximately $1.5M) from the company's account through overseas remittances and business income processing methods without adhering to proper procedures such as CEO approval or shareholder meeting resolutions." Further, during the scrutiny of the company's financial transaction records, it was uncovered that more than 1.7B KRW (approximately $1.3M) had been withdrawn from Daniel's personal bank account "without his awareness."
