Once again, Park Hyo Shin, the singer, is involved in a legal controversy, this time facing allegations of fraud. Reports from SPOTV News on the 25th reveal that Park Hyo Shin is accused of breaching the Specific Economic Crimes Aggravated Punishment Act (fraud) and obstructing business by former executives of his previous management company.
Former representatives of Glove Entertainment, together with company shareholders, filed a lawsuit against Park Hyo Shin at the Yongsan Police Station in Seoul on the 7th of this month. The lawsuit claims that Park Hyo Shin supposedly misled them about the ownership of shares by suggesting the existence of a "nominee trust agreement," which was later found not to be true. Allegations state that Park Hyo Shin deceived them into believing he had entrusted shares to them when, in reality, he still retained ownership. The lawsuit further contends that in a shareholders meeting in March 2022, Park Hyo Shin wielded voting rights over the shares, appointing three individuals loyal to him as directors and ultimately taking over control of the company. It is also claimed that in August 2023, he utilized these voting rights to dismiss the former CEO.
The accusers argue that Park Hyo Shin's actions constitute a form of fraud known as "triangle fraud," where the deceived party and the victim are distinct entities. Despite this, Park Hyo Shin's camp refutes the allegations, clarifying in an interview that while there is an ongoing legal battle concerning shares, there is no fraud lawsuit against him.
This legal case is the fifth that Park Hyo Shin has faced. In the past, he was sued by his former agencies, Nissy Entertainment and Interstage, over contract terminations, resulting in settlements or rulings against Park Hyo Shin. He has also been involved in a criminal lawsuit in 2014 for asset-related offenses and a civil lawsuit in 2019 for alleged fraudulent acquisition of goods.
Despite these legal entanglements, Park Hyo Shin is still scheduled to participate in the upcoming 10th-anniversary production of the musical 'Phantom,' set to premiere on the 31st of the following month.