On December 22, 2022, it was reported by various publications that Lee Seung Gi has filed a legal complaint against Hook Entertainment’s CEO and the company’s former and current directors on embezzlement and fraud charges.
Lee Seung Gi’s statement
Lee’s legal representative has given an official statement regarding the entire matter and here is what it says, “This morning, we filed a complaint against the former and current directors, including CEO Kwon Jin Young of Hook, to the Seoul Central District Prosecutor’s Office.”
The statement continued. “As has already been reported several times, Hook Entertainment hid the fact that music sales were generated from Lee Seung Gi for about 18 years after his debut and did not settle it. We filed a complaint for violation of the law (business embezzlement) and violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).”
Cheating related to advertising fees
Lee Seung Gi further revealed about having learned through a recent tip that the former and current directors of Hook Entertainment cheated him out of the advertising model earnings. Lee’s legal representative further said, “Lee Seung Gi knew that about 10% of the advertising model fee was paid to the advertising agency in the name of ‘Agency fee’ for several years, but in reality, former and current directors of Hook Entertainment did not pay some of the above agency fees to the advertising agency. It seems to have been shared.”
Not only that but when the singer-actor raised an objection, Hook Entertainment acknowledged the fact only then. The agency reportedly paid Lee Seung Gi around 630 million won as advertising fees and delayed interest separately from the sourcing fee on December 16, 2022. The legal representative further added, “For the above crimes, Hook’s CEO Kwon Jin Young, and three current and former directors were also sued for fraud and business embezzlement.”
Lee’s representative also said, “Lee Seung Gi has never reached an agreement with Hook regarding music fees and payment. Despite this, on the morning of December 16, 2022, Hook without prior notice transferred about 4.81 billion won of unsettled payment for music and defrauded advertising payment and a filed confirmation of non-existence of debt lawsuit against Lee Seung Gi.” Talking about Lee Seung Gi, he reportedly learned about the fraud via a recent report and hasn’t yet received the complaint.
The agency’s response
On the other hand, Hook Entertainment claimed that it had fully delivered the actor’s unpaid profits of around 2.9 billion won and interest charges of almost 1.2 billion won. However, Lee Seung Gi posted on Instagram after the same to announce that, aside from legal fees, he would be donating all of his unpaid earnings.