Worth of hard work and sweat is finally delivered.

In a landmark judgement by South Korean Court, the Court ruled in favor of Singer and Actor Lee Seung Gi. In a lawsuit filed by entertainment agency Hook Entertainment (Hook) (now Choraekbam) against singer and actor Lee Seung Gi, for confirmation of non-existence of debt and later on claiming that he should return excess 900 million won paid worth of advertising commission, the Court of first instance ruled that Lee Seung Gi should receive 580 million won more from Hook Entertainment.

The Judgement

The Civil Settlement Department of the Seoul Central District Court (presiding judge Lee Se-ra) held a sentencing hearing of Hook's lawsuit against Lee on April 4,2025 and ruled that

The counter-claim defendant (Hook) must pay the counter-plaintiff (Lee) 581,377,421 won and delayed damages.

The court first rejected Hook's claim that Hook overpaid about 900 million won in settlement money by not deducting commission from Lee's advertising model fee revenue between February 2015 - November 2022, saying,

It is reasonable to assume that there was an implied agreement that the entire amount would be settled without deducting the commission in the case of money paid between November 2015 ~ October 2022.

Even if there was no such agreement, Hook could not pay the 900 million won to Mr. Lee and claim its return, even though he knew that he was not obligated to pay it.

On the other hand, Mr. Lee (judge) judged that he could receive the remaining 581,377,421 won and delayed damages from Hook.

Hook's argument that the statute of limitations has expired was also rejected, saying,

It cannot be allowed as an abuse of rights contrary to the rule of good faith.

The court pointed out that

The plaintiff did not fulfill most of its obligations to pay the settlement money during the exclusive contract, did not properly carry out the groundwork for the settlement, did not prepare and manage the accounting books for the defendant, or did not provide the settlement data to the defendant.

Lee has been working as an entertainer under Hook for 19 years since he signed the first exclusive contract when he was a minor, and Court judged that Hook had made it difficult for Lee to exercise his right to settle money by belatedly providing settlement data, saying that "the cost of publicity was high" and that "the first and second albums and the remake album were in the red." 

Origin of Dispute

The beginning of the dispute originates on 15th November 2022, when it was revealed that Lee Seung Gi had sent a certification of contents to his then agency Hook Entertainment, asking for transparent disclosure of payment. 

On November 21, Dispatch reported that after Lee Seung Gi debuted in June 2004 with his first studio album, he released 27 albums and 137 songs, but that the singer did not receive any of his revenue. Dispatch went on to share a statement of profit by distribution channel and revealed that the music revenue earned by Lee Seung Gi between October 2009 and September 2022 was 9.6 billion won (approximately $7,069,000). Additionally, they reported that five years' worth of statements from June 2004 to August 2009 were missing, raising the speculated total amount that Hook Entertainment received from distributors to over 10 billion won (approximately $7,364,400).

This news reports shocked Korean public, entertainment industry and K-entertainment fans across the World alike as Lee Seung GI is a well-known A-lister Artist active as a Singer, Actor and Entertainer, known for his immense talent, sincerity and well-loved personality. It was significant as Seung Gi was working with Hook since his debut years since he was a minor.  Gaslighting is the act of manipulating someone to question their own reality. Gaslighting is very harmful and is often used in abusive relationships, whether it be between lovers or, in Lee Seung Gi’s case, between employee and employer.

You’re a “Minus Singer.”

Lee Seung Gi made a lot of money through his appearances in K-Dramas, variety shows, and endorsements. His appearance fee is very expensive. According to the Dispatch article, Lee Seung Gi was properly paid for these endeavors.

The article claimed that Lee Seung Gi was happy with the amount he was paid, and because of this, he didn’t want to challenge the agency’s assertion that he wasn’t a profitable singer.

Lee Seung Gi’s manager revealed to Dispatch that the agency’s CEO, Kwon Jin Young, would often tell Lee Seung Gi that he was a “Minus Singer.”

The CEO would always say, ‘You’re a minus singer. Your fans never spend money but ask for so much. You made a lot of money through other (acting, variety shows) projects. Just think of your singing career as fan service.’ She brainwashed him. If he had questioned her about the accounting, he would have been scolded. Lee Seung Gi chose not get cursed out rather than get paid.

— Lee Seung Gi’s manager

After these reports, Hook Entertainment’s CEO Kwon Jin Young released a short statement stating that they are looking into the matter.

On November 23, Dispatch released a voice recording of the conversation between Hook Entertainment CEO Kwon Jin Young, the company director, and Lee Seung Gi's manager after receiving this content certification request.

Voice recording of the conversation between Hook Entertainment CEO Kwon Jin Young, the company director, and Lee Seung Gi's manager

In the recording, CEO Kwon said, "He even sent a request for certification of revenue content. He's like doing this to make me go all out. I will swear on my name I'm going to kill him. I'm going to use the rest of my life to kill Lee Seung Gi, that prick. You leave too."The director of the company tried to explain to CEO Kwon, but CEO Kwon angrily continued, "Shut it. Stop it. I'm going to kill him. I'm going to use the rest of my life to kill that prick."Lee Seung Gi's manager, who left the conference room, vented out his anger to the company director and said, "I can't do this anymore. I'm going to leave (the company). I won't do this anymore. I really worked hard for 9 years. I was f*** looked down, and she would say Lee Seung Gi is finished in front of people. She would tell me to choose sides wisely. How can I continue? to work?"

On November 24, Lee Seung Gi’s legal representative released the following statement:

Hello. This is Lee Seung Gi’s legal representative.

First of all, we are apologetic for causing many people concern with a problem between Lee Seung Gi and the agency. Regarding the recent reports of unsettled payment for his music, we would like to express Lee Seung Gi’s stance on his behalf.

As it has been reported, Lee Seung Gi sent Hook Entertainment a certification of contents regarding the unsettled payment for his music on November 15 through a legal representative. We requested that the profit breakdown from the distribution of all the albums Lee Seung Gi participated in be revealed and that the amount he has not been paid for his music be settled and paid.

Following his debut, Lee Seung Gi carried out [music and acting] promotions while under Hook Entertainment for 18 years. In the matter of his activities in the entertainment industry and statement of accounts, Lee Seung Gi fully trusted and followed Hook Entertainment. As representatives of Hook Entertainment did not bring up anything regarding payment for music in the slightest, he was not even aware of generating profits from music, and he recently became aware of the truth that music profits were being made due to a message accidentally sent by an employee. Afterwards, Lee Seung Gi requested settlement details numerous times, but Hook Entertainment gave excuses that were lies such as, “You are a minus singer (meaning negative profit margin),” and avoided providing details.

In this process, Lee Seung Gi heard insulting and threatening remarks that are difficult to even say from the CEO and others, so he eventually decided after much thought on sending a certification of contents through a legal representative because he determined that beyond just the issue of the payment settlement for his music, a relationship of trust could not continue with CEO Kwon Jin Young as well as Hook Entertainment, which he has relied on like family while being together for a long time.

Furthermore, in addition to [the issue of] Lee Seung Gi’s payment for his music, we also have plans to carry out a close examination of various legal relationships between Hook Entertainment including CEO Kwon Jin Young and Lee Seung Gi. Thus, we request Hook Entertainment to transparently reveal the details of sales and settlement of accounts over the course of Lee Seung Gi’s activities in the entertainment industry through several certification of contents, and we are currently expecting a sincere reply from Hook Entertainment.

Regarding the relevant matter, we are grateful and apologetic for the many people who are supporting Lee Seung Gi and taking interest in him. Lee Seung Gi will do his best so that this does not affect the projects he is working on in the future, and we will deliver a separate statement after examining the clear truths of the matter in greater detail.

On November 30, Hook Entertainment CEO Kwon Jin Young sent emails to media outlets stating that she will take full responsibility for the controversy related to Lee Seung Gi’s unpaid music profits and that she will dispose of her personal property to carry out the responsibility.

On December 16, Hook Entertainment followed up by releasing the following statement:

This is Hook Entertainment.

First, we sincerely apologize to Lee Seung Gi, who is the person who must be suffering the most right now due to this matter.

As is already widely known, Hook has received a request from Lee Seung Gi for transparent disclosure of his digital music earnings during the time period of his exclusive contract with our agency, as well as payment of said earnings.

Accordingly, we sent Lee Seung Gi the relevant data by the beginning of this week, and we tried to reach an amicable settlement with Lee Seung Gi based on that data.

However, the amount requested by Lee Seung Gi was too different from the amount he was owed, so we were unable to reach a mutual agreement.

In spite of this, Hook did not want a prolonged dispute over unpaid earnings with Lee Seung Gi, with whom we have maintained an exclusive contract for a long time. Therefore, aside from the base payment of 1.3 billion won [approximately $993,846], today, we paid Lee Seung Gi his unpaid earnings of 2.9 billion won [approximately $2.2 million], as well as 1.2 billion won [$917,298] worth of delayed interest, in full.

We have also confirmed that we owe no further debts to Lee Seung Gi, and in order to end our dispute over unpaid earnings with Lee Seung Gi, we have already filed a debt validation lawsuit with the court.

Regardless of the reason, Hook sincerely apologizes once again to Lee Seung Gi for causing this misunderstanding and dispute through our mistakes. We hope that in the future, we will be able to reach a transparent settlement through the court so that neither side is left with any doubts, and we will do our utmost to achieve this goal.

Once again, we deeply apologize to everyone who has been hurt by this incident.”

Later on the day, Lee Seung Gi took to his Instagram account, sharing his feelings about the dispute:

His post reads as follows:

I am greeting you for the first time in a while. Hello, this is Lee Seung Gi.

Honestly, I have not been very well. Getting enraged from the betrayal, frustrated from the disappointment, feeling resentment one day and blaming myself the next, I have been spending my days repeating this.

This morning, I received a text message that about 5 billion won (approximately $3.8 million) was deposited into my bank account. It seems that Hook Entertainment probably thinks that I took legal action simply to receive money. I have never even received one of those typical statements of accounts for my music profits… They are trying to unilaterally wrap up this case under the pretext of paying the unpaid earnings.

Until now, I lived without even knowing that there were music profits that I had to receive. I endured 18 years of being told that I am a “minus singer” (meaning negative profit margin). In this situation, the reason why I filed a lawsuit against Hook is not because of the unpaid earnings. Someone’s hard work and sweat should not be misused by someone else’s greed. I thought that fulfilling this mission is the best I can do.

I have received 5 billion won now. Of course, I don’t know how this amount was calculated. However, I do not understand Hook’s calculation method, so I think I will continue to fight in court. It will become a tiresome fight, and I want to first apologize for causing fatigue to the public who is watching this occur.

What I can promise, however, is that no matter the total amount of unpaid earnings, I will donate it all. Starting with the 5 billion won that was deposited today, excluding the legal aid costs, I will give back the rest to the community. This is not a decision I made in a day. The moment I decided on the fight against Hook, I decided to use all of the money I will receive to help those who are in need.

I have lived until now without knowing of my music profits. Of course, the 5 billion won I received today is such a big and valuable amount of money to me. It contains the sweat of my teens, 20s, and 30s.. However, if this money can be used for those who are more in need than me, the happiness and value I feel will exceed that of just 5 billion won.

Starting next week, I will meet with charity representatives to decide on my specific plans. There are many people who are physically impaired to the point that it is even difficult to move. There are many who have dreams but have to give up in the middle because of their circumstances. There are also those who cannot receive proper treatment even when their lives are at risk. 5 billion won might not be enough to help all of those people, but I will take action beginning with a small step forward.

And more than anything, many people supported me through this incident. I received a lot of strength as you felt anger with me and comforted me. Thank you for once again making feel that I am someone who is loved. I will return that love at least a little bit by giving back to society.

I hope you have a warm holiday season. I will diligently continue down my own path as I always have.

On December 22, Lee Seung Gi’s legal representative released a lengthy statement regarding their legal complaint. They stated, “This morning at the Seoul Central District Prosecutors’ Office, we filed a complaint against Hook Entertainment’s CEO as well as [the agency’s] former and current directors.”

They continued, “Like it has been reported many times, Hook hid the fact that music profits were being generated by Lee Seung Gi for approximately 18 years since his debut, and they did not pay [Lee Seung Gi]. Regarding this, we filed a legal complaint against Hook Entertainment CEO Kwon Jin Young and the financial directors on the suspicions of violation of the Act on the Aggravated Punishment etc. of Specific Economic Crimes (occupational embezzlement) and (fraud).”

“Furthermore, Lee Seung Gi learned through a recent report that Hook’s former and current directors deceived him and also did not pay a part of his advertisement model profits.”

His legal representative stated, “Lee Seung Gi believed that approximately 10 percent was paid to the advertisement agency under the title of ‘agency commission,’ but it appears that in actuality, Hook Entertainment’s former and current directors did not pay a part of the agency commission to the ad agency and [instead] shared it amongst themselves.”

“Only when Lee Seung Gi raised this issue did Hook Entertainment acknowledge this and paid Lee Seung Gi approximately 630 million won (approximately $500,000). Lee Seung Gi’s legal representative stated that they sued Kwon Jin Young and three directors for fraud and occupational embezzlement.”

They continued, “Lee Seung Gi has never reached an agreement with Hook regarding music fees and payment. Despite this, on the morning of December 16, 2022, Hook without prior notice transferred about 4.81 billion won (approximately $3.8 million) of unsettled payment for music and defrauded advertising payment and filed a confirmation of non-existence of debt lawsuit against Lee Seung Gi.” The legal representative added that Lee Seung Gi learned of this through a new report, and he has yet to receive the complaint.

Furthermore, there is a significant gap between the amount that has been transferred and the amount Lee Seung Gi understands to be the unpaid amount. The legal representative stated, “While simultaneously responding to the lawsuit on the confirmation of non-existence of debt, we will file a counter lawsuit, and we plan on claiming damages against Hook and related personnel for unpaid music fees and illegal acts.”

Keeping the promise of Giving Back to Society

Lee Seung Gi has always been known for his charitable acts making donation to the causes that are near his heart. But, this time, it was even more significant as he promised it on his personal Instagram post. Keeping up with his promise, to donate the settlement money excluding legal fees, Lee Seung-gi donated two billion KRW ($ 2.1 million) to Seoul National University Children's Hospital to improve their medical environment. Lee Seung Gi who visited Seoul National University Children's Hospital and toured the site, decided to support the medical environment improvement fund, sympathizing with the structural problems of children's hospitals, which cause deficits as they treat children.

On his birthday i.e. 13th January 2023, Singer and actor Lee Seung-gi donated 550 million KRW ($450,000) to the Korean Red Cross in celebration of his birthday. The donation was made to help increase bloodmobiles and free food distribution buses around the country, according to a press release published by the Korean Red Cross on Friday. 

Lee Seung-gi donated 300 million KRW($244,000) to KAIST, the tech university. According to the school, Lee contacted KAIST President Lee Kwang-hyung to ask about the donation. All money will go toward building the school’s New York Campus, which is under development. (3 February,2023)

On April 24, it was reported that the Lee Seung Gi- Lee Da In donated ₩110 million KRW (about $82,700 USD) of  wedding gift money to the Korea National Red Cross. 

This fight is not for money, but to make sure no other youngster face what he has faced

It is significant to point that Lee Seung Gi, himself emphasized several times that his fight is not money but to make sure that his juniors doesn’t suffer the same fate.

During his 'Daesang' acceptance speech at the '2022 KBS Drama Awards' on December 31, 2022; Lee Seung Gi moved many with his words as he referred to his troubles in the past year. He said,

As I sat watching many of my fellow actors and actresses, fellow sunbae (senior) and hoobae (junior) artists here today, I felt choked up. Currently, Korean dramas, films, music, and various content, they are rising to the forefront of the global entertainment industry. That was only possible because of the hard work of all of you in attendance today. Realizing that, I made a vow once again. Next year, and the year after that, and in 10 to 20 years after that, there will be hoobae artists sitting in these seats, and for them, I need to fight for the rights that should humanly belong to all of us. I can't just let them inherit these problems. Thus, I will continue to fight, and I will continue to work hard as an actor in this industry.

Lee Seung Gi KBS 2022 Daesang Speech

In fact, on 24th May 2024, Singer and actor Lee Seung-Gi appeared himself in trial and read the petition in court, revealing the damage he suffered from his former agency Hook Entertainment and CEO Kwon Jin-young, and expressing his betrayal. Lee Seung-gi said he was encouraged by the hope that junior singers would no longer be unreasonable.

Lee Seung-gi appeared as a defendant on the second hearing day of the debt non-existence lawsuit filed by Hook Entertainment (hereinafter referred to as Hook) against him at the Seoul Central District Court on the 24th.

At the trial, Lee Seung-gi read the petition himself.

Since my debut, Kwon Jin-young, CEO of Hook Entertainment, has found it very unpleasant to talk about money such as appearance fees and down payment. When I mention the money issue, I get very angry and push myself as a bad person who only reveals money. I learned about the existence of music fees at an accidental opportunity in 2021, but when I asked CEO Kwon, he said, 'You are a negative singer, just think of singing as fan service'.

He said CEO Kwon repeatedly said this self-esteem-deprecating words for years and did not give him a proper statement of settlement.

When it became public in 2022 that I had not received any settlement of music fees for 20 years, CEO Kwon unilaterally remitted about 4.8 billion won. I felt a great betrayal that the company I trusted, and CEO Kwon had been deceiving me for a long time. I wanted to tell you how a celebrity who made his name known to others like this has been unaware of this natural right for 20 years.

He said, confessing that CEO Kwon Jin-young's verbal abuse and assault occurred at the same time as he prepared for the celebrity.

Many people like me who entered the agency at a young age and started celebrities will be in a similar position. I took courage, hoping that this would not happen again and that there would be no victims like me. I feel desperate to end this nonsense for my juniors as a senior.

Landmark issue that changed the future of Artists in Korean Entertainment Industry

Following the conflict between Lee Seung-gi and Hook, the National Assembly passed a bill known as the 'Lee Seung-gi Incident Prevention Law' (amendment to the Public Culture and Arts Industry Development Act) in September of 2024, which mandates that management companies disclose accounting records related to revenue settlements even 'without requests from affiliated entertainers.'

According to the amendment bill, public culture and arts planners are required to provide accounting records related to the affiliated public culture and arts practitioner and the remuneration to be paid, using one of the prescribed methods at least once a year, starting from the date they enter into a contract for public cultural services, even if there is no request from the affiliated public culture and arts practitioner.

The ruling has set a precedence for accountability and transparency in the entertainment industry of Korea, especially in the dynamic between artists and their agencies. Lee’s victory has been welcomed with cheers by fans and industry insiders alike as a step in the right direction to protect artist rights.

It also specified 'written delivery' (including electronic documents) and 'mail or electronic mail' as methods of providing accounting data related to settlements. Until now, there has been no specific provision regulating the method of data provision, and some management companies have only allowed entertainers to 'view' the data, without providing copies.

Significance of the Judgement

The judgement is quite significant in the light of recognition of rights of the Artist working in the Korean entertainment industry. With its growing influence all over World, it is important to realise the issues faced by Artists especially when they debut age is significantly low. With minor Artists signing contract with management agencies, it is important that State take responsibility to protect their interest. This judgement and 'Lee Seung-gi Incident Prevention Law' (amendment to the Public Culture and Arts Industry Development Act) will pave way for protecting the interests of Artists in front of powerful corporations.

Lee Seung Gi’s determination in facing the situation and fighting it out, to ensure that in future no young Artist has to face this kind of injustice, is remarkable. This case will serve as a benchmark for future instances.  He has donated the money that he previously received as settlement leaving the legal expenses, thus proving that money wasn’t the reason to fight this long and strenuous battle in Court of Law. His goal was to set a precedent once and for all. Lee Seung Gi’s remarkable spirit is praiseworthy. Despite facing betrayal from a CEO and agency whom he gave his trust and respect for 18 years of his life and despite repeated attempts by this agency at media play trying to malign his character by using unrelated incidences and cases, he came out stronger and confident.

Lee Seung Gi is currently concentrating on his career as a Singer. He joined BPM Entertainment on April 29, 2024, an agency that mostly specializes in singer management.

Recently the music video of Return, a remake of his own 2012 hit, released as title track of his 20th anniversary special remake album “With”, received much attention for his excellent singing as well as Acting:

Also, his appearance in KBS Music Reality show SynchroU garnered favorable reviews, where he exhibited his amazing vocals.

Lee Seung Gi recently appeared in You Tube channel of JAYKEEOUT’s BGL: Background Live video, which won the heart of Korean and International fans alike.

Lee Seung Gi keeps on releasing covers of his favorite songs on YouTube channel @leeseunggi_official, with his own interpretation and unique style, exhibiting his love and passion for music and establishing his identity as a Singer.

I wish the future path of this sincere, brave and talented Artist, remains filled be success and happiness.