Hook Entertainment, the Korean agency which manages Korean stars like Park Min-young, Oscar winner Youn Yuh-jung and Choi Gyu-ri, has been embroiled in another controversy.
Last Nov. 10, the police raided the headquarters of Hook Entertainment in Gangnam, Seoul and conducted a search and seizure. It was reported that part of the investigation is the alleged embezzlement of funds by some of the agency’s executives.
Following the raid, Korean singer and actor Lee Seung-gi sent a legal document to the company, requesting for the disclosure of financial documents related to his earnings.
Lee Seung-gi debuted as a singer and has been with Hook Entertainment for 18 years.
Korean media outlet Dispatch reported that Lee Seung-gi has released 27 albums containing 137 songs in the past 18 years from 2004 to 2022 but he did not get any cent from the sales from his agency.
Dispatch obtained documents that showed that from October 2009 to September 2022, Lee Seung-gi’s music earned revenues of 9.65 billion won (about $7.12 million), which all went to Hook Entertainment’s corporate bank account.
In addition, the data on music revenue and expenses on Lee Seung-gi’s music for five years from June 2004 to August 2009 disappeared.
If this is accounted for, Lee Seung-gi’s music sales were expected to exceed 10 billion won ($7.38 million).
The news report added that based on Lee Seung-gi’s contract with Hook Entertainment, there was a sharing ratio of 4:6 with 4 going to Lee Seung-gi and 6 to Hook in 2004. In 2009, it was changed to 6:4 in favor of Lee Seung-gi and 7:3 in 2017 in favor of the singer and actor.
It calculated that based on the sharing, 5.8 billion ($4.28 million), excluding the missing sales date from 2004 to 2009, should go to Lee Seung-gi.
While Lee Seung-gi worked hard for his agency, he was apparently being mistreated.
One of the directors of Hook Entertainment told the singer-actor’s manager, "Don't spend too much with the company money. Have Lee Seung-gi pay for his meal at least once a day during shooting. Lee Seung-gi has gone nuts. Know where to stick to, okay? This is my last warning," SBS News reported based on the Dispatch article.
On Nov. 17, Lee Seung-gi messaged one of Hook’s directors who threatened him.
"My manager told me that you are furious with me about asking for a transparent record of my earnings and payments that you will have me killed whatever happens. I asked for the record for the past year, but you weren't responding to it. I filed a legal document, because I wanted to claim my right. But how could you threaten me like this?"
He said, "I'm a 37-year-old grown up man, but I'm being treated like an unimportant 18-year-old high school student, who gets bashed for everything he does. It truly makes me feel frustrated. You've disregarded me, my family, manager and friends on purpose. I won't let you treat my people that way anymore. I'm going to step up now."
"If your threats refrain me from being in the industry, I'll take it as my destiny. I don't want to make things any worse with you. Please contact me through my attorney from now on,” he said.
As Hook Entertainment’s troubles mounted, its CEO, Kwon Jin-young, issued a statement.
"I am ashamed to face everyone, regardless of the truth behind the unfavorable talks about our company and myself, that have been coming out in the media. I'm sorry because everything is my fault, and the result of a lack of virtue," she said.
She said, "We ask for your understanding that we are refraining from expressing our position as we are currently in the clearing stage and there may be legal issues in the future. Once the agency or I have clearly identified the legal responsibility, I will take full responsibility without backing down or avoiding it."
“We will do our best not to interfere with the activities of our celebrities, and we will be more careful not to cause concerns in the future," Kwon Jin-young said.
Lee Seung-gi has starred in dramas such as "Brilliant Legacy," "My Girlfriend is a Gumiho," "Gu Family Book," "Vagabond" and "Mouse."