It has been newly revealed that Hook Entertainment borrowed 4.7 billion won from the agency's singer Lee Seung Gi for seven years without any interest.
On November 24, Segye Ilbo reported that the audit report of Hook Entertainment shows the company borrowed 4.7 billion won (approximately 3.5 million dollars) from Lee Seung Gi with zero interest for the purpose of management and operation costs in 2013.
The company repaid the money after seven years in 2020, but the report says it is extremely unusual for an entertainment agency to borrow cash from its artist.
One insider commented, "It is possible that the company used the artist's name to fund the money, or the artist could have lent to the label on special terms. Either way, it seems necessary to review the flow of funds and taxes of the case."
Earlier on November 21, Dispatch reported that Hook Entertainment did not pay anything to Lee Seung Gi for the songs that he released since his debut in 2004.
During his 18 years of career as a singer, Lee Seung Gi released a total of 137 songs and 27 albums.
Lee Seung Gi filed a document against Hook Entertainment through his legal representative, asking to disclose the clear record of his earnings and payments.
His legal representative stated, "Lee Seung Gi heard insulting and threatening remarks from the agency's representatives, and decided that the trust relationship with Hook Entertainment and its CEO Kwon Jin-young, who he had considered like a family and had been relying on for a long time, could not be sustained."
(Credit= Hook Entertainment)