MLD Entertainment, the Korean agency of Filipino global group HORI7ON, admitted that it is undergoing financial difficulties.
The company, which created K-pop girl group Momoland, issued a statement after a Korean media outlet reported that it is experiencing financial difficulties and is having trouble paying the salaries of its employees.
The logo of MLD Entertainment (X)
HORI7ON (MLD Entertainment)
Maeil Kyungjae Star Today reported that MLD Entertainment has not paid its employees’ wages due to its finances.
As a result, most of the employees resigned, and it was found that less than five people remain in the company.
Employees who resigned due to delayed pay did not receive severance pay. They reported MLD Entertainment to Korea’s Ministry of Employment and Labor but they only received a partial amount.
The report added that MLD Entertainment’s CEO, Lee Hyung-jin, is reportedly staying in the Philippines to focus on the management of HORI7ON.
HORI7ON recently became the brand ambassador of JBL Philippines and performed at Samsung’s Galaxy AI Festival last July 13.
After the report came out, MLD Entertainment issued a statement to Korean media.
"It is true that we have unpaid wages due to financial difficulties caused by Covid-19. However, we are currently working to normalize management, and we are also sequentially paying out the unpaid severance pay," MLD Entertainment said.
MLD Entertainment was founded in 2015 and became known because of the success of Momoland. However, Momoland disbanded in February last year.
Currently, MLD Entertainment is home to groups Lapillus, HORI7ON, and dance crew CocaNButter.
Singers Lee Seung-chul and Gil are also affiliated with MLD Entertainment.