The singer is fighting to maintain his rights as the main shareholder.
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Singer Park Hyo Shin recently won the first lawsuit in a legal dispute between him and his former label Glove entertainment.
Park filed the lawsuit not as an artist, but as a shareholder in the company. He is the second largest shareholder of the label, holding 39.37% of the shares. He is followed by the unidentified third largest shareholder “A”, who owns 10.76% of the company.
In February 2022, Glove Entertainment held a general meeting of shareholders and informed them that the company would issue additional shares worth KRW 100 million (approximately US$81,100) to a third party. The reason given was that the scale of the company’s operations had increased, but the available capital was not sufficient to sustain it.
The issuance of so many additional shares to a third party meant that Park’s and “A’s” holdings would drop significantly in the company, thus reducing the value of their holdings. But the two shareholders jointly filed a lawsuit, claiming that Glove Entertainment’s decision was unlawful. According to their claims, the former president of company “B”, which is the largest shareholder, allocated new shares to his partners. His motive is to keep his management rights in the company while reducing Park’s and “A’s” shares.
Plaintiffs also argued that shareholders were not informed in a timely manner of the decision to make a capital increase payment, further adding to the illegality of the move.
On January 26, the 31st Division of Seoul District Court Civil Settlement ruled in favor of Park and “A” and ordered that the new stock issue be voided.
Relations between Park and his former agency were already strained. He was even honest with fans that he is not being paid for his music work and contract with Glove Entertainment. The singer stopped promoting in 2019, and only in May 2022 resumed his activities after setting up his own agency.
You can read about the singer’s long-term friendship, among others BTS‘s V here:
V and Park Hyoshin of BTS share a friendship that goes deeper than fans thought
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