Singer Park Hyo-shin Sued for Fraud Allegations by Former Agency, Again

Singer Park Hyo-shin has been sued on allegations of fraud, according to an exclusive report by SPOTV News on April 25.

The outlet reported that Park Hyo-shin was recently sued by former associates from his previous agency for alleged violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and obstruction of business.

On April 7, the former CEO (referred to as Mr. A) and shareholders of Glove Entertainment (Glove Enter) filed a formal complaint against Park Hyo-shin at the Yongsan Police Station in Seoul.

Glove Enter had allocated new shares through two paid-in capital increases in May 2016 and August 2018, granting shares to Park Hyo-shin, Mr. A, and other shareholders.

According to the plaintiffs, Park Hyo-shin allegedly used his close associate, Mr. B—who was unfamiliar with company operations—to falsely imply that shares owned by the plaintiffs had been entrusted to him through a nominee agreement, even though no such agreement existed. They claim this misled others into believing that Park was the true owner of the shares.

They further alleged that Park exercised voting rights associated with these shares at an extraordinary shareholders' meeting in March 2022, appointing three of his allies as directors. In August 2023, during another shareholders' meeting, he allegedly used these voting rights to remove Mr. A from his director position.

The plaintiffs described Park's actions as constituting a "triangular fraud," stating that they suffered actual and potential financial losses regarding the ownership, voting rights, and dividend rights tied to approximately 23,300 shares.

Park Hyo-shin's side acknowledged to SPOTV News that "it is true that the former CEO filed a civil lawsuit related to the shares against both Glove Entertainment and Park Hyo-shin," but claimed, "we are unaware of any separate criminal complaint for fraud."

This is not Park Hyo-shin’s first encounter with legal disputes.

In 2005, he was sued for ₩1 billion in damages by his then-agency, Nissi Entertainment Group, over alleged breach of contract obligations. The case was later settled after Park returned his contract deposit.

In 2008, he was again involved in a lawsuit over contract issues with his former agency Interstage.

In 2014, Interstage sued him for fraudulent evasion of enforcement.

In 2019, a businessman accused Park of fraud over luxury items—a car and a watch—worth approximately ₩400 million.

Despite the ongoing legal battles, Park Hyo-shin is set to appear in the 10th-anniversary production of the musical Phantom, which opens on May 31, while continuing to earn praise for his recent musical duet 'Winter Ahead' with BTS’s V.

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