Fifty Fifty, Former CEO Jung Hong-joon Accused Of Embezzlement “Serious Crime”

Girl group Fifty Fifty (Kina, Sana, Sion, Aeran) filed a criminal complaint against Attract CEO Jung Hong-joon on March 17, accusing him of embezzlement.

Fifty Fifty’s legal representative, Barun Law Firm, said in a statement that they filed the complaint with the Seoul Gangnam Police Station, accusing Jung of violating the Act on Aggravated Punishment for Specific Economic Crimes, including embezzlement.

The complaint alleges that Jung embezzled company funds worth 10 billion won ($8.7 million) for his own personal use. The group also alleged that Jung used company funds to pay for his personal expenses, such as his children’s tuition and his wife’s luxury items.

Fifty Fifty is seeking a warrant to arrest Jung and is also demanding that he return the embezzled funds.

Jung has denied the allegations, saying that he used the company funds for legitimate business expenses. He has also said that he is willing to cooperate with the investigation.

The police are currently investigating the case

The lawyer said, “CEO Jeon Hong-joon has revealed that Star Crew ENT spent an advance payment previously paid by a music distributor for an unknown expense, and then included it in the name of the girl group’s investment cost, forcing Attract to bear the advance payment debt. Profits from 5P55T’s music and albums are being used to repay these debts,” he said. confirmed,” he said.

“Until now, Attract has been consistent in devaluing Fifty Fifty’s request for provisional injunction for a minor reason, such as settlement complaints, and evading responsibility. However, the Fifty Fifty members violated settlement obligations, such as delaying the agency’s provision of settlement data and omission of income items. As long as CEO Jeon Hong-joon, who has committed criminal acts of embezzlement and breach of trust and financial accounting irregularities beyond simple complaints, is exercising control and management rights of Attract, the agency will continue to maintain an exclusive contractual relationship with Attract. “The filing of a criminal complaint is an unavoidable measure to clarify the details of the serious reason why it cannot maintain an exclusive contract relationship with the agency, while externally revealing 55 Fifty’s desperate position.”

In particular, the legal representative said, “Currently, facts are distorted on the Internet, SNS, YouTube, etc., and excessive criticism is being made based on this, and some content exceeds the limit. Please criticize based on facts or speculation that have not been objectively confirmed. Please refrain,” he added.

On August 17, 2023, Fifty Fifty (Kina, Saena, Shio, Aran), through its legal representative, Law Firm (Limited) Barun, violated the Act on Aggravated Punishment, Etc. We have filed a complaint with the Seoul Gangnam Police Station regarding criminal charges.

CEO Jeon Hong-joon revealed that Star Crew ENT spent the advance payment previously paid by the music distributor for an unknown cost, and then included it in the name of the girl group investment cost, causing Attract to bear the advance payment debt. 5P55T’s sound source and record revenues are being used.

It was also confirmed that Attract deposited 55 Fifty’s albums with the distributor and the 2 billion won advance payment was paid to Star Crew ENT, not to Attract.

The above acts are crimes corresponding to business breach of trust that cause property damage to the attract company.

In the meantime, the agency has been consistent with an attitude of avoiding responsibility while devaluing Fifty Fifty’s application for provisional injunction for a minor reason such as settlement dissatisfaction. However, the Fifty Fifty members went beyond simple complaints about the ‘violation of settlement obligations, such as delayed provision of settlement data and omission of income items from the agency,’ and attracted CEO Jeon Hong-joon, who had committed criminal acts of embezzlement and breach of trust and cheating in financial accounting. As long as he is exercising his control and management rights, he is in the position that he cannot continue to maintain an exclusive contract relationship with his agency, Attract. We would like to inform you that this filing of a criminal complaint is an unavoidable measure to clarify the details of the serious reason for not being able to maintain an exclusive contract relationship with the agency, while externally revealing 55fifty’s desperate position.

Currently, facts are being distorted on the Internet, SNS, YouTube, etc., and excessive criticism is being made based on this, and some content exceeds the number limit. Please refrain from criticizing based on facts or speculation that have not been objectively confirmed.

Star Crew ENT Co., Ltd. is a company that signed a trainee contract with 55th Fifty, and is actually owned and operated by CEO Jeon Hong-joon. Established in June 2021, Attract Co., Ltd. was established by Jeon Hong-jun, and has been registered as an executive director and representative director since July 12, 2022.

On July 12, 2021, Attract CEO Jeon Hong-joon signed a business transfer contract for the production of a new girl group from Star Crew Ent, and 55 Fifty has an exclusive contract with Attract. Therefore, Star Crew ENT does not have any rights in relation to Fifty Fifty, and Attract is the subject of the rights obligation to plan and produce the albums of Fifty Fifty, to which the accusers belong, and distribute them through music distributors to obtain profits.

On August 18, 2020, Star Crew ENT signed a contract with Interpark, a music distribution company, for a total of 9 billion won in ‘Content Advance Payment and Profit Distribution’. *Advance payment distribution contract is a contract method in which a record distributor pays an advance payment to the agency and secures exclusive distribution rights for the sound source and record. Most of the advance payment contracts offset the music source revenue and the advance payment (the music source and album income are not actually paid until the advance payment is completed), and the artist’s album release is conditional on the number and timing.

Currently, Star Crew ENT’s advance payment debt is being repaid with the revenue from 55 Fifty’s albums.