Kang Daniel’s Statement on Legal Action

On the afternoon of May 20th, Kang Daniel’s legal representative, law firm Wooree, announced that their client had filed a criminal complaint with the Seoul Metropolitan Police Agency. The charges included forgery of private documents, embezzlement, breach of trust, and fraud in the use of computers, among others. The complaint was filed against the major shareholder of KONNECT Entertainment.

Despite being both CEO and artist for the past five years, our client has prioritized protecting the company. In order to minimize harm to those who have trusted and followed him like family, including affiliated artists, employees, and third-party contractors, he spent over a year making efforts before deciding to file a criminal complaint. Despite the heavy weight on his heart, he ultimately concluded that taking legal action was the only solution.

Kang Daniel’s representatives addressed the allegations of forgery and use of private documents by stating that in December 2022, a prepayment distribution contract valued at approximately 10 billion won was signed under the CEO’s name without their client’s knowledge. The contract was found to have been forged and the corporate seal was used illegally. It was not until January 2023 that Kang Daniel became aware of this contract. The contract was signed without the CEO’s approval or the artist’s consent. Despite multiple attempts to inquire about the details and procedure of the contract, no satisfactory responses were received. As a result, Kang Daniel had to personally obtain bank transaction records to verify the authenticity of the contract.

The accused individuals claimed that on the charge of embezzlement, there was evidence to support the withdrawal of at least 2 billion won from the company’s account through foreign remittances and business income processing methods. These actions were carried out without proper procedures such as approval from the CEO, board resolutions, or shareholder meetings. On the charge of breach of trust, they also stated that tens of millions of won were spent using an anonymous corporate card and falsely recorded in the accounting books as expenses for props belonging to the client.

We will release additional statements once the investigative agencies have thoroughly uncovered all the facts of the case.

In the meantime, the primary shareholder A, who is currently facing charges from Kang Daniel, possesses approximately 70% of KONNECT’s shares and acts as its de facto proprietor. KONNECT Entertainment boasts a roster of artists including Kang Daniel, Chancellor, and Yuju. As Kang Daniel’s exclusive contract with KONNECT is set to expire at the beginning of next month, it appears that he will naturally part ways with the agency once the contract period concludes.