Concert production company JG Star has released a statement disputing singer Lim Chang Jung's claims of a ₩1 billion unpaid performance fee. JG Star clarified that the conflict is not solely about performance fees but stems from broader contractual violations. Despite Lim's assertions of making efforts to resolve the issue, JG Star mentioned a different reality. Consequently, legal action will be pursued.
Outlined chronologically were the events leading to the dispute:
1. National Tour Contract Breach (2020-2021)
JG Star entered a nationwide tour agreement with Lim in March 2020, paying an advance of ₩1.48 billion. Following Lim's breach of COVID-19 regulations and subsequent contract postponement, JG Star incurred all financial burdens and agreed to a one-year venue ban for Lim's benefit. In exchange, Lim verbally agreed to grant lifelong concert rights to JG Star.
2. Unilateral Termination of 2023 Concert Agreement
Despite rescheduling the postponed performances for 2023 and initiating preparations, Lim abruptly terminated the contract and sought to proceed with concerts featuring a new financier.
3. Unmet Obligations for Remake Album
A contract for a remake album was signed in 2022, with JG Star investing ₩115 million for its production. Lim received an advance of ₩75 million, but the project remained incomplete.
4. Financial Repercussions from Stock Manipulation Controversy
Lim's involvement in a stock manipulation scandal in April 2023 adversely affected his professional engagements. A settlement agreement was reached on May 13, 2023, specifying compensation for losses incurred, amounting to ₩1.12 billion.
5. Dispute Over Property Collateral
Lim transferred ownership of his building to JG Star as collateral, which was later found to be insufficiently mortgaged to cover the losses. Despite claiming financial difficulties, Lim continued to utilize the property without rent.
6. Allegations of Concealed Earnings
Accusations were made against Lim for concealing earnings from music copyright sales and concert fees totaling ₩3.5 billion. Nevertheless, Lim purportedly neglected debt repayment and communication since late 2023.
Following Lim Chang Jung's alleged contractual breaches and financial misconduct, JG Star declared the initiation of legal actions for reparation. JG Star stressed their support for Lim despite losses but underscored the pursuit of complete financial compensation via legal means.