Singer Lee Seung Gi and his former agency Hook have begun a legal battle over settlement fees.
However, media noted Hook Entertainment claims they overpaid for advertising activities and should be reimbursed 900 million won [$687,810], while Lee Seung Gi takes the position that he should receive an additional 3 billion won [$2.2 million].
On the 23rd Of June, the 20th Civil Conciliation Division of the Seoul Central District Court held the first trial of the lawsuit filed by Hook Entertainment against Lee Seung Gi to confirm the existence of debt. They also proceeded with the counterclaim filed by Lee Seung Gi against Hook Entertainment, demanding settlement fees and other payments.
On that day, a representative for Hook Entertainment argued, “We should receive 900 million won as reimbursement for advertising fees paid to Lee Seung Gi.” Prior to the trial, Hook Entertainment changed their claim. Initially, they argued that they had no money to pay Lee Seung Gi, but now they claim that they should receive the excess advertising fee settlement of approximately 900 million won from him.
On the other hand, Lee Seung Gi’s side stated, “Hook Entertainment has been continuously deducting 10% from advertising revenue without disclosing the fact that the advertising agency commission rate was reduced from 10% to 7%.” They also stated that they should receive a settlement of 3 billion won, combining the advertising agency commission and music sales revenue.
The judge decided to hold the next trial on August 25th to finalize the collection of evidence and witness statements related to the settlement amount.
Meanwhile, Lee Seung Gi claimed that he had not received settlement of his music revenue for 18 years since his debut in November of last year. He sent a document proving these claims to Hook Entertainment and notified them of the termination of his exclusive contract. In December, Hook Entertainment claimed that they had fully paid Lee Seung Gi the unpaid settlement fees of 2.9 billion won and delayed interest of 1.2 billion won, leading to the filing of this lawsuit to confirm the existence of debt. However, Lee Seung Gi’s side stated that there was never any agreement with Hook Entertainment regarding the settlement and that the amount paid by Hook Entertainment differed from the actual settlement fees, leading to the filing of a counterclaim in January.