Kang Daniel faces trouble after 5 years of founding his own company

YTN reported that today (May 20), Korean singer Kang Daniel filed a complaint with the Seoul Metropolitan Police Agency against Mr. A - a major shareholder of Konnect Entertainment - on charges of falsifying private documents, embezzlement and breach of trust in business, violating the Information and Communications Network Law, and computer fraud, causing damage of nearly 14 billion won to the company.

Mr. A holds about 70% of the shares of Konnect Entertainment - a company founded in 2019, with Kang Daniel as CEO.

Kang Daniel's lawyer said, "Kang Daniel, who has been protecting the company as CEO and artist for the past 5 years, filed a criminal complaint more than a year before officially filing a lawsuit, in order to minimize the damage to the artists, employees, and third-party contractors who have trusted the company like family.

However, we decided that there was no other solution than to hold them legally responsible."

The lawyer explained that in December 2022, Mr. A stole Kang Daniel's name and company seal to sign a music distribution contract worth 10 billion won without the client's knowledge.

Regarding embezzlement, Mr. A withdrew at least 2 billion won from the company's account through overseas remittance or business income processing, without any legal procedures such as CEO approval, board resolution or general meeting resolution.

Regarding the charges of hacking into a communications network and computer fraud, Kang Daniel said, “During the process of checking the company’s financial transaction details, the client confirmed that more than 1.7 billion won was withdrawn from a bank account under his name without the client’s knowledge.

Kang Daniel founded his own company — Kang Daniel established his own company Konnect Entertainment after leaving LM Entertainment in 2019. Photo: Naver

Kang Daniel founded Konnect Entertainment in 2019. Over the past five years, he has served as both the CEO and an artist under the company. He has released several albums including “Color on Me,” “MAGENTA,” and “YELLOW.” Last June, he released his fourth mini-album “REALIEZ.”

In addition, Kang Daniel went on a world tour last year, performing in North America, Europe, and Asia.

The fact that a major shareholder of Konnect company took advantage of Kang Daniel's name to embezzle and appropriate assets shocked the audience. Because this is not the first time the male star has been involved in a lawsuit with the management company.

In 2019, Kang Daniel (former member of Wanna One) filed a lawsuit to terminate his contract with LM Entertainment due to unfair treatment by the company, arbitrarily selling the singer's exclusive contract to a third party at a higher price for profit.

After Kang Daniel won the lawsuit, he became an artist of the company he is the CEO of. However, Kang Daniel's exclusive contract with Konnect Entertainment is expected to expire early next month. It is likely that Kang Daniel will part ways with Konnect after 5 years to find a new direction.

Source: https://laodong.vn/giai-tri/kang-daniel-gap-song-gio-sau-5-nam-thanh-lap-cong-ty-rieng-1342561.ldo