Konnect Entertainment appears to be heading towards closure, as the company takes steps to dismantle its operations.
According to Edaily, on the 21st, Konnect Entertainment recently vacated its headquarters in Gangnam, Seoul, and liquidated its corporate vehicles. In the wake of these developments, several artists, including singer Yuju, singer-songwriter Chancellor, and dance crew We Dem Boyz, have left the company. Additionally, many management team members and other employees have also resigned. With Kang Daniel’s exclusive contract set to expire next month, it is unlikely that a renewal will occur.
Kang Daniel revealed yesterday that he has filed a criminal complaint against the major shareholder of Konnect Entertainment. According to Law Firm Wooree, representing Kang, “The client has filed charges against the major shareholder of Konnect Entertainment for forgery, embezzlement, breach of duty, network intrusion, and computer fraud.” They further stated, “As the CEO and an artist who has led the company for the past five years, the client has made every effort over the last year to minimize damage to the artists, employees, and third parties who trusted and followed him like family. However, finding no other solution, he proceeded with the criminal complaint.”
Kang Daniel alleges that the major shareholder entered into a 10 billion KRW (approx. 7.5 million USD) advance distribution contract without his consent and withdrew tens of billions of KRW from bank accounts under his and the company’s names without proper authorization. He also claims that the same shareholder used corporate credit cards for his personal use and falsely recorded these expenses as costs for props in the accounting books.
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